Archive for the 'Stocks' Category

S&P 500 — Getting “Real”

Tuesday, March 10th, 2009

What is interesting is how everyone assesses the economy in ‘real terms’ but the equity market in ‘nominal terms’. The reason why economists prefer to focus on ‘real variables’ is so that the trend can be examined net of the effects of inflation (or deflation). Standards of living are a ‘physical’ concept – how many widgets are we producing per capita? How far will the dollar go? These are questions that require ‘real’ variables. So, when we normalize the long-run chart of the S&P 500 with the Consumer Price Index, and look at the stock market in real terms as we do with output and employment, it tells a very interesting, if not disturbing, tale. Here is what jumps out at us:

Thoughts of stock market investment

Monday, December 10th, 2007

Can Fed Cut, More Questions than Answers, Rotating Chinese Shares, Oil-Sweater Swaps

Monday, October 29th, 2007

Rumors Rule…

Sunday, October 28th, 2007

Trick or Treat

Sunday, October 28th, 2007
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