random guy

Economy Watch: What if Stocks Were Priced in Gold?

You say, "If you look at a chart of inflation from 1978 to 1982, you'll notice a huge spike. If you look at a chart of the Dow Jones Industrial average during the same period, you'll see that stocks traded sideways in a fairly well-defined range over the same period."

But looking that DJIA chart, from the trough in 1978 to the peak in 1981, the DJIA gained 273 points for a 36.5% increase in under 3 years. That's hardly sideways trading (an IRR of nearly 17%, which outstrips the 10-15% inflation rate).