07-04-2008, 05:28 PM
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Administrator
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The silent market crash: the S&P 500 vs the price of eggs
This year's stock market decline has received a lot of media attention. But what most people don't realize is that the stock market has been silently losing value for almost a full decade.
Measured in dollars, the S&P 500 is down almost 15% since its 2000 highs. Adjusting for inflation or measuring with almost any other yardstick, the index is down substantially more.
This would be great if stocks were finally cheap again, but I don't see any evidence of that yet. When all is said and done, I expect the stock market to go quite a bit lower from its current level, not only in dollars but even more in terms of purchasing power...
DeForest McDuff's Monthly Market Comments
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