That was hyper inflation which is obviously very bad
Dollar Down + Stock Market Up?
- Thread starter DallasTrader
- Start date
That was hyper inflation which is obviously very bad
Look what is soaring right now. ags, oil, metals. The fed is desperate to keep this balloon going and not let housing drag everything down.
Those comodities are soaring not necessarly due to inflation but as the result of huge demand by emerging markets.
the point, that many miss, is that the "market" (dow, nasdaq, amex composite, whatever) is MEASURED in dollars.
iow, in the same period where we have had a 20%+ up move in the S&P (dollar denominated), we have LOST 25% value in the dollar. so, in REAL terms, the S&P has actually LOST VALUE
similarly, while gold (which is measured in dollars) is near 1980's highs, it is NOWHERE near 1980's highs in REAL dollars.
cheap dollars mean foreign investors can buy more shares of US stocks, since they are cheaper.
iow, in the same period where we have had a 20%+ up move in the S&P (dollar denominated), we have LOST 25% value in the dollar. so, in REAL terms, the S&P has actually LOST VALUE
similarly, while gold (which is measured in dollars) is near 1980's highs, it is NOWHERE near 1980's highs in REAL dollars.
cheap dollars mean foreign investors can buy more shares of US stocks, since they are cheaper.
I dont think the chorus of idiots realizes that this isnt the 1990's with 10 dollar oil. Trying to save housing and getting 5 dollar gas instead doesnt sound like my idea of a good time
most people don't mind paying 3$ a gallon for gas
They spend $4 on a tiny cup of coffee.
They spend $4 on a tiny cup of coffee.
"Yes, and crude oil too. I don't think the average US citizen fully realizes how dollar devaluation, in addition to demand, is reflected in prices they see at the pump."
exactly. especially since the dollar has been decoupled from gold.
what exactly is a dollar worth? well, it's worth X euros, Y loonies, Z gallons of gas, P gallons of milk, etc.
we have a dollar index that is objective, but it still makes it difficult to really grasp the fact that the dollar is fluid.
i have seen some really neat charts that chart the dow, for example, in REAL (inflation adjust dollars), or in terms of how many ounces of gold you could buy per share of the dow etc.
those give a very different picture. it's quite illuminating
the one thing that has really been great for this bull market is earnings (well that, and a liquidity bubble). S&P earnings trend has been simply phenomenal. however, earnings in REAL dollars - not so much.
exactly. especially since the dollar has been decoupled from gold.
what exactly is a dollar worth? well, it's worth X euros, Y loonies, Z gallons of gas, P gallons of milk, etc.
we have a dollar index that is objective, but it still makes it difficult to really grasp the fact that the dollar is fluid.
i have seen some really neat charts that chart the dow, for example, in REAL (inflation adjust dollars), or in terms of how many ounces of gold you could buy per share of the dow etc.
those give a very different picture. it's quite illuminating
the one thing that has really been great for this bull market is earnings (well that, and a liquidity bubble). S&P earnings trend has been simply phenomenal. however, earnings in REAL dollars - not so much.