' Ace Finance & Markets News ': STOCKS FOR THE LONG RUN: Latest "Real Mega-Bears" Show S&P 500 Down 44% Since Peak 11 Years Ago

Monday 22 August 2011

STOCKS FOR THE LONG RUN: Latest "Real Mega-Bears" Show S&P 500 Down 44% Since Peak 11 Years Ago

MY TAKE ON THE CHARTS -

This is an example of how our economy is run from a computer on a desk by the people that are supposed to have our best interest`s at heart, but as all is now becoming plaintively obvious that their decisions in protecting our way of life is being eroded everyday. The so-called bear market is coming ever closer and the rich and moreover the super-rich are looking at decamping to far away places, with their mega bucks made by using your money, not their own.

STOCKS FOR THE LONG RUN: Latest "Real Mega-Bears" Show S&P 500 Down 44% Since Peak 11 Years Ago:

The latest from Doug Short at Advisor Perspectives...

It's time again for the weekend update of our "Real" Mega-Bears, an inflation-adjusted overlay of three secular bear markets. It aligns the current S&P 500 from the top of the Tech Bubble in March 2000, the Dow in of 1929, and the Nikkei 225 from its 1989 bubble high.

The chart below is consistent with my preference for real (inflation-adjusted) analysis of long-term market behavior. The nominal all-time high in the index occurred in October 2007, but when we adjust for inflation, the "real" all-time high for the S&P 500 occurred in March 2000.

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Here is the nominal version to help clarify the impact of inflation and deflation, which varied significantly across these three markets.

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See also my alternate version, which charts the comparison from the 2007 nominal all-time high in the S&P 500. This series also includes the Nasdaq from the 2000 Tech Bubble peak.