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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: westpacific who wrote (49746)1/14/2006 11:26:37 AM
From: Crimson Ghost  Respond to of 110194
 
A bear market in stocks or real estate is not deflation -- defined either as a drop in the supply of money and credit outstanding or a drop in the CPI.



To: westpacific who wrote (49746)1/14/2006 5:03:45 PM
From: GraceZ  Read Replies (1) | Respond to of 110194
 
The only thing that saved it was MASSIVE FED AND PPT injections of FIAT offshore props

Survivorship bias has an enormous effect on indexes like the Nasdaq 100, indexes that include a lot of riskier, fast growing new companies. If you were to chart the Nasdaq 100 using the companies that comprised the index back in 2000 it would still be fairly low. You'd find that an enormous number of companies included in 2000 went to zero and were liquidated. The weak were merged into other stronger companies. Only the strong survive in an index and this skews the measurement upward. No worldwide interventionist conspiracy is necessary.

en.wikipedia.org

Survivorship bias is the tendency for failed companies to be excluded from performance studies due to the fact that they no longer exist. It often causes the results of studies to skew higher because only companies which were successful enough to survive until the end of the period are included.