Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: jt101 who wrote (715)	1/12/2003 11:28:51 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 1064

jt, The returns I quoted are not adjusted for inflation, or anything else. They are just the monthly closing values for the S&P and Dow with a linear fit to the log data. I saw an inflation adjusted chart some time ago, but it was not as bad as what you recall. It was that for roughly the period you are talking about there was no net inflation adjusted gain for a period of about 16 years. I can believe it will take about 16 years to break the inflation adjusted 2000 highs.

To: jt101 who wrote (715)	1/15/2003 12:38:18 AM
From: Dan Duchardt	Read Replies (2) \| Respond to of 1064

I remember reading, (in Barrons?), between 1966 and 1980 even though the index values remained the same, with inflation they were down by about 80-90% Someone on another thread posted an updated version of that chart I mentioned in my other reply. geocities.com Estimating the distance from the 1966 peak to the 1982 low to be 60% of the distance from the 1,000 level to the 10,000 level leads to an estimated decline of about 75% in that time frame. I guess your recollection was not far off. The inflation adjustment sure puts the market in a different light.