Monday, December 10, 2012

Real S&P 500 (October 2012 Dollars)

Click to enlarge.

There were clearly better times in all of recorded history to swing for the fences. For example, 1982 looks pretty darned good in hindsight. Got time machine?

As a retired saver, I cannot afford to take big risks with my nest egg. I have no job to fall back on if the gambling doesn't pay off.

This is not investment advice.

See Also:
Sarcasm Disclaimer

Source Data:
St. Louis Fed: Real S&P 500 Index (October 2012 Dollars)


Scott said...

Looks like we're due for a steep dropoff.

I think Bernanke's out of QE tools to keep stock prices up.

Stagflationary Mark said...


Looks like we're due for a steep dropoff.

At the very least, it would seem that conditions are not perfect for a massive long-term equity rally.

Luke Smith said...

If the rate of inflation turns negative (deflation), then even if GDP were to decrease, there could still be real GDP growth if GDP were to decrease at a rate less than the rate of deflation. The same could be said about your chart - so look on the bright side of life!

There does not seem to be another surge of institutional money like after the dot-com bubble burst. So it must be corporate profits driving stock market growth - which has probably peaked - and of course QE thinking.

Stagflationary Mark said...

Luke Smith,

The Institutional Money Funds chart looks very interesting. I'm definitely looking forward to playing with that data.