Browning, E. S. (2013, March 6) ‘On Wall Street, Investors Plot Next Move’ The Wall Street Journal, C1, C4.
“In nominal terms the Dow today appears to have risen 22% from the record it hit in January 2000. But taking inflation into account, it still is more than 10% below that record.
...The last nominal Dow record, in October 2007, wasn’t a record at all once inflation is removed. The last real, or inflation adjusted, record was on Jan 14, 2000. (C1)
…But since the end of 1994, when the stock boom began, consumer prices have risen 55% according to the Bureau of Labor Statistics…. (C4)
…Inflation adjustment makes current stock values appear much lower, something Wall Street never likes to do….” [END]
Majia here: When adjusted for inflation, Dow is still 10% below Jan 2000. Beware bulls....