SpinWatch

Interesting Factoid: Market Gains When Gold Is Below $455

Eddy,
You may be onto something. High gold price indicates more fear which is bad for markets.
What would the $455 number be adjusted for inflation?
Also, what would the 1987 price be adjusted for inflation?

The Innovation Dividend: Efficiency Isn't Growth

Society has been though this many times. Every innovation that produces major gain also produces major pain for those working in that sector. In the transportation sector during the early 1900’s horses were replaced by automobiles. This was devastating for ranchers, blacksmiths, and feed producers. We have now forgotten the massive ranch unemployment generated by the horseless carriage as we merrily get in our cars and drive off. The reason change feels different now is because those hurt by Internet innovation are currently visible to us. Several decades from now when visions of the unemployed have dimmed, the Internet period of commerce will be viewed as a highly productive period in which unnecessary “fat” was trimmed.

Where Was the Inflation?

Dirk-excellent article. The answer to your question is at winningoverbarriers.co...

Is America on a Downward Slope?

Outstanding article!

Where Will Baby Boomers' Savings Go?

Annuities are frequently left out of stock-justifying articles. Boomers will be far better off with a diversified portfolio of annuities (to augment CD’s and Social Security), than with declining stock portfolios. As more Boomers retire, more will take their money out of the market causing stock prices to drop far more than the current credit crisis “crash”. Financial planning discussions should add annuities as an asset class to stocks, bonds, cash, commodities, and real estate.

The Worst Bear Market in Modern History?

John - This is a good comparison that gives a feel for what might be in the market's future. One refinement to this analysis would be to add inflation or deflation to this process. I bought my first stock in the 1973-1974 market when the market was at 689. The market continued crashing until it reached 642 upon which the media said that this was worse than the 1929-1932 period when adjusted for the deflation then versus the 1970's high inflation. Adjusting for inflation/deflation would narrow the percentage gap in the table (89% versus 48%) considerably. As the deflationary spiral drags on the comparative pain of the 2008 crash could be put into a better perspective with an adjustment for deflation.