One explanation for the DOW

[KingHippo]

When the value of the dollar decreases due to inflation, it should be expected that assets priced in dollars will increase in price in an inverse proportion reflecting a true constant value (when all other factors remain the same). For example: Zimbabwe currently has the world's highest rate of inflation, and at the same time the Zimbabwe stock exchange is increasing dramatically.

Zimbabwe stocks defy crisis (http://news.bbc.co.uk/2/hi/business/2542445.stm)

[Murphy's Law]

When the value of the dollar decreases due to inflation, it should be expected that assets priced in dollars will increase in price in an inverse proportion reflecting a true constant value (when all other factors remain the same). For example: Zimbabwe currently has the world's highest rate of inflation, and at the same time the Zimbabwe stock exchange is increasing dramatically.

Zimbabwe stocks defy crisis (http://news.bbc.co.uk/2/hi/business/2542445.stm)

Folks, we got ourselves a new thinker around here. And that isn't :sarc:

[KingHippo]

here is a more current article on Zimbabwe that mentions the performance of Zimbabwe's Stock Exchange in a time of extreme inflation.

http://news.bbc.co.uk/2/hi/business/6922441.stm

[Ardent Listener]

Excellent thread new guy.

[HistoryStudent]

Like Patton said to his command staff, "if all you a$$holes are thinking alike; nobody is thinking."

http://futures.tradingcharts.com/chart/DI/M


If we go back some 6 years when the money supply was about half (around 10,500 DOW) then today we should have a 21,000 DOW to keep even.

Problem is most AMERICANS & OTHERS are fixated on the dollar NOT ON ITS WORTH so they miss the point of VALUE. :confused_ma:

Especially now when the FED is INFLATING at 14% - doubling the money supply every FIVE years MINUS.

So save a million in the bank and some 3 to 4 years from now the buying power will be like $500,000.00 right now.