7 replies to this topic

[Russ]

http://www.moneyandm...r...p;cat_id=6

"Based on the Turner Construction Cost Index, a measure of the cost of building commercial and residential properties, the Dow now builds 30.4% less property than it did in 2000.
The average in-state tuition for a four-year public university was $1,500 per academic year in 2000. Today, it’s $5,836. So while the Dow would have bought 7.57 years worth of college tuition in 2000, today it buys 2.17 years. That’s a whopping 71.3% decline!
The Dow now buys 55% less silver than it did in 2000 … 63% less copper … 45% less corn … 37% less wheat … even 43% less rice! " MoneyandMarkets.com

[nimblebear]

But according to even the staunchest Bear, Super Bear, Richard Russell, we are now in a Bull market. Finally. Time to buy more stock.

[LeroyB3]

http://www.moneyandm...r...p;cat_id=6

"Based on the Turner Construction Cost Index, a measure of the cost of building commercial and residential properties, the Dow now builds 30.4% less property than it did in 2000.
The average in-state tuition for a four-year public university was $1,500 per academic year in 2000. Today, it’s $5,836. So while the Dow would have bought 7.57 years worth of college tuition in 2000, today it buys 2.17 years. That’s a whopping 71.3% decline!
The Dow now buys 55% less silver than it did in 2000 … 63% less copper … 45% less corn … 37% less wheat … even 43% less rice! " MoneyandMarkets.com

Russ,

What you have to ask yourself is how is this information helpful for making money? What are the options here? You could be short instead of long...you would have lost money, which means you would have bought even less college education or less property. You could have also been in cash, which hasn't given as high a return as the DOW. In this case as well, you would have bought even less college education or less property.

Looks like the best option was to be long the Dow.

Best,

LB

[vulture]

Sounds a bit like the 1970's to me. At least near the end, Volcker put an end to the runaway inflation. Nowadays, we have Gentle Ben who talks outside both sides of his mouth every other day. You're right, graph the DOW in any of the aforementioned asset classes and it's been a bomb. Inflation hits you sideways just about any way you look at it.

[da_cheif]

Sounds a bit like the 1970's to me. At least near the end, Volcker put an end to the runaway inflation. Nowadays, we have Gentle Ben who talks outside both sides of his mouth every other day.

You're right, graph the DOW in any of the aforementioned asset classes and it's been a bomb. Inflation hits you sideways just about any way you look at it.

inflation is your friend.......makes your debt much easier to pay off......it put 4 vehicles in the average households driveway instead of the one their fathers had......and volcker didnt put an end to anything......it took care of itself......

Edited by da_cheif, 15 February 2007 - 03:44 PM.

[Russ]

Russ,

What you have to ask yourself is how is this information helpful for making money? What are the options here? You could be short instead of long...you would have lost money, which means you would have bought even less college education or less property. You could have also been in cash, which hasn't given as high a return as the DOW. In this case as well, you would have bought even less college education or less property.

Looks like the best option was to be long the Dow.

Best,

LB

Commodities...gold, oil, uranium etc have beaten the Dow 30 over the past 5 years.

Edited by Russ, 15 February 2007 - 04:24 PM.

[Russ]

da_cheif said: "inflation is your friend.......makes your debt much easier to pay off......it put 4 vehicles in the average households driveway instead of the one their fathers had......and volcker didnt put an end to anything......it took care of itself......"

The average North American is losing to inflation now. Currency debasement is destroying purchasing power as wages are not keeping up.

Interesting that historians are now saying that ancient Rome fell due in part to wars with Persia...now Iran and Iraq etc. Modern Rome (USA) is at it again, turning on printing presses to pay for wars.

"History does not repeat itself, but it does rhyme." Mark Twain.

[LeroyB3]

Russ,

What you have to ask yourself is how is this information helpful for making money? What are the options here? You could be short instead of long...you would have lost money, which means you would have bought even less college education or less property. You could have also been in cash, which hasn't given as high a return as the DOW. In this case as well, you would have bought even less college education or less property.

Looks like the best option was to be long the Dow.

Best,

LB

Commodities...gold, oil, uranium etc have beaten the Dow 30 over the past 5 years.

Russ,

Yes...we all know that most commodities have beaten the Dow over the past few years. That wasn't what your post was talking about though. There are always asset classes that gain more then other asset classes. I still don't see how this helps you make money.

Best,

LB