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Tip Sheet
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Stingy Investor Tip Sheet
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| Party like it's 1968 |
After another down day on the markets we're in shooting distance of
1968 prices on the S&P500. That is, if you take inflation into
account.
The following graph shows the real S&P500 price index with
current price levels highlighted by the green line. The red line
shows what we'd be in store for if we suffer from a repeat of the
1929-32 collapse.
Today I want to highlight the yellow line which reflects a further
10% decline from today's price. That's about what it would take for
the S&P500 to be roughly even with its inflation-adjusted level in
1968 based on monthly prices.
But hold the presses! Based on the daily December 2, 1968 high, we are
only a 6.8% drop away from being even with 1968 prices on an
inflation-adjusted basis. Keep an eye out for 653.32 on the S&P500
which is the magic number.
(click for larger version)
As an aside, it's oddly fascinating to see that the S&P500 has
basically wiped out all of the gains from the 1990s bubble.
Correction:
The 1929-32 loss was corrected from 86.1% to 80.61%. The extra 0 was
lost in transcription. The graph's red line was modified slightly to
reflect this change.
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| | 03/02/2009 10:30 PM EST Permlink save & share | Markets |
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| Disclaimers: Consult with a
qualified investment adviser before trading. Past performance is a
poor indicator of future performance. The information on this site,
and in its related newsletters, is not intended to be, nor does it
constitute, financial advice or recommendations. The information on
this site is in no way guaranteed for completeness, accuracy or in any
other way. More...
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