4 ms·
Chart one, DJIA, adjusted for inflation: http://home.earthlink.net/~intelligentbear/dj-lt-infl.gif http://home.earthlink.net/~intelligentbear/dj-lt-infl.gif W
by EliRivers 12y ago
Chart one, DJIA, adjusted for inflation:
http://home.earthlink.net/~intelligentbear/dj-lt-infl.gif http://home.earthlink.net/~intelligentbear/dj-lt-infl.gif
When you take inflation into account, it doesn't look nearly so interesting.
- MarkPNeyer 12y agoit actually looks like things are getting _more_ stable.
- Pxtl 12y agoMuch better. Also logarithmic, which was another failing of the above graph. With a line of best fit! Yes, if the market is overinflated, it's because growth itself has failed to happen.
- Retric 12y agoA Lograthmic chart is much better, but when you add in dividend reinvestment and inflation adjustment you get a vary different chart.
- dpierce9 12y ago^This. If you don't take into account inflation and don't plot on a log scale, you can't make any sense of a long term stock or bond price chart. It really doesn't make any sense (though it would be nice if this chart were also a broader index).
- solomatov 12y agoDIJA chart doesn't include reinvested dividends.