Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
If standard deviation is normal (standard) then it makes sense that stocks would have a normal vibration. The market isn't the only thing that effects these vibrations. The currency that the stock are exchanged for also play a part. Stocks that were once traded in gold and silver back dollars are now traded with fiat currencies backed by the faith of central bank credit.
I believe credit and currency valuation has played a bigger and bigger role in these vibrations and apparent upward valuation. Ray Dalio does a nice job of explaining the short term and the long term debt cycle and how stocks are a transactional component of these exchanges.
Finally, I think a monetary policy that operate outside of constraints can manipulate currency value and over time make stocks appear higher in value, but when these same stocks are priced in a currency that has constraints (gold or silver in the past) stock's (the dow) true value is revealed.
Comments
I believe credit and currency valuation has played a bigger and bigger role in these vibrations and apparent upward valuation. Ray Dalio does a nice job of explaining the short term and the long term debt cycle and how stocks are a transactional component of these exchanges.
economicprinciples.org/
Finally, I think a monetary policy that operate outside of constraints can manipulate currency value and over time make stocks appear higher in value, but when these same stocks are priced in a currency that has constraints (gold or silver in the past) stock's (the dow) true value is revealed.