Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-03-2008, 09:43 PM   #21
Dryer sheet aficionado
 
Join Date: Feb 2008
Posts: 29
Quote:
Originally Posted by dex View Post
I wonder if you adjusted for inflation from the high of 1929 would the Dow be up or down. My guess is that it would be down.
Not sure if this is exactly what you're asking, but according to this inflation calculator:

The Inflation Calculator

$381 in 1929 (this was where the Dow peaked) was worth $4573.31 in 2007. So based on that conversion, the Dow is clearly up by a good bit since the peak of 1929, even accounting for inflation.
__________________

__________________
nickel is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-03-2008, 09:47 PM   #22
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 798
Quote:
Originally Posted by nickel View Post
Not sure if this is exactly what you're asking, but according to this inflation calculator:

The Inflation Calculator

$381 in 1929 (this was where the Dow peaked) would be worth $4573.31 in 2007. So based on that conversion, the Dow is clearly up by a good bit since the peak of 1929, even accounting for inflation.
thus the "real rate of return" that stocks historically provide, comes in spurts though
__________________

__________________
RockOn is offline   Reply With Quote
Old 03-03-2008, 09:51 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Quote:
Originally Posted by RockOn View Post
comes in spurts though
I heard Bernanke is working on a pill for that, though.
__________________
Marquette is offline   Reply With Quote
Old 03-03-2008, 10:05 PM   #24
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,044
Quote:
Originally Posted by RockOn View Post
So making it easier for everyone and anyone to trade causes markets to become priced beyond what fundamentals support? Think of the implications for stock market pricing, $4 trades and all (some offer free trades).
Well just a few years ago if you wanted to own corn or wheat, you had to build a big silo and ask the nearest farmer to provide you with the commodity. If you wanted to own oil, you could always build a big underground tank and have the black gold delivered directly to your property. In other words: not very practical. But now, we can all own commodities with the push of a button via ETFs. No storage. So a lot more people and institutions have been able to invest in commodities and drive the price up. Think about pension funds investing even a small portion of the trillions of dollars they manage into commodities and how the price of those commodities can be affected. That was my point. Is the price of oil going up because we consume more and/or produce less or because of speculation? I think both. Gold is another example of commodities going up partly because of speculation in my opinion.
__________________
FIREd is offline   Reply With Quote
Old 03-03-2008, 10:53 PM   #25
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 798
Quote:
Originally Posted by Marquette View Post
I heard Bernanke is working on a pill for that, though.
If it stays real for more than 4 decades, call the doc.
__________________
RockOn is offline   Reply With Quote
Old 03-03-2008, 10:59 PM   #26
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 798
Quote:
Originally Posted by FIREdreamer View Post
Well just a few years ago if you wanted to own corn or wheat, you had to build a big silo and ask the nearest farmer to provide you with the commodity. If you wanted to own oil, you could always build a big underground tank and have the black gold delivered directly to your property. In other words: not very practical. But now, we can all own commodities with the push of a button via ETFs. No storage. So a lot more people and institutions have been able to invest in commodities and drive the price up. Think about pension funds investing even a small portion of the trillions of dollars they manage into commodities and how the price of those commodities can be affected. That was my point. Is the price of oil going up because we consume more and/or produce less or because of speculation? I think both. Gold is another example of commodities going up partly because of speculation in my opinion.
I agree. The GLD ETF might be causing demand all by itself. Yet, the whole world places a value on an ounce of gold so I'm not sure just how much the US factors you point out contribute to the gain.
__________________

__________________
RockOn is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Record Dow! Whee! W2R FIRE and Money 277 11-12-2007 05:25 PM
Dow - Wow! BUM FIRE and Money 17 05-07-2006 02:17 PM
Dow 40000 wompo FIRE and Money 9 10-17-2005 05:28 PM
No Bubble for the DOW retire@40 FIRE and Money 16 06-04-2005 11:29 AM
Calculators and following the dow daily runnerr FIRE and Money 25 05-13-2005 01:29 PM

 

 
All times are GMT -6. The time now is 07:35 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.