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Famous Predictions - "We don't like their sound, and guitar music is on the way out"
IF someone predicted the financial crisis, THAT is a prediction. I'm sure people did. I'm sure those people did not get their due then, and maybe not even now.
Reply to @Mark: "1,000.00 US Dollars of 1929 are worth 10,721.86 US Dollars of 2013" per http://stats.areppim.com/calc/calc_usdlrxdeflator.php. The closing peak of the 1920s bull market occurred on September 3, 1929, when the Dow Industrials hit 381.17.
The Dow currently is at 15,376. In 1929 dollars, that would be 1,434.
That said, there's no reasonable expectation that that simple price inflation drives long-term stock prices.
Comments
At what level would today's market be if priced in 1929 dollars?
The Dow currently is at 15,376. In 1929 dollars, that would be 1,434.
That said, there's no reasonable expectation that that simple price inflation drives long-term stock prices.
For what interest it holds,
David
Check out this link:
http://mpra.ub.uni-muenchen.de/15892/1/MPRA_paper_15892.pdf