Do you think CNBC will be telling you the inflation adjusted Dow is DOWN 1.2% from where it was 16 years ago? Do you think they will be telling you it has broken support and is headed significantly lower? Do you think CNBC or any of the corporate media will tell you the truth?
The Dow is currently trading 12% below its May 19th all-time record high. For some perspective, today’s chart illustrates the inflation-adjusted Dow since 1900 — there are several points of interest. Take for example an unlucky buy-and-hold investor that invested in the Dow right at the dot-com peak of December 1999. A decade and a half later, the inflation-adjusted Dow is actually down 1.2%. That is not altogether an impressive performance considering that nearly 16 years have passed. On the other hand, take the investor who bought right at the end of the financial crisis. The inflation-adjusted Dow is up a significant 100% from its financial crisis lows — not bad for a for a six and a half year investment. More recently, the inflation-adjusted Dow has broken below support of a trend that has existed since the end of the financial crisis induced bear market.
If one waits for the Death Cross before selling, expect major losses. Each Index requires only 1 MA with a specific period (# of days on a daily chart, for example) for each Index. Price goes above MA = buy; price goes below MA = sell. This catches the meat of the moves. I prefer weekly charts, as one only has to view chart(s) once/week.
Inflation adjusted DOW down 1.2% is probably dong better than inflation adjusted middle class income for the same period.
And inflation -official inflation, not real inflation- has been low for those years.
Big boys are shearing the sheep today. Suckers rally. Distribution to the sheep before the panic sets in. Good luck to all, we are going to need it.
Gold is on sale though! I just backed up the truck. BTFD!