Chart of the Week 23 August 2014
With the Dow Jones Industrial Average at an all-time high in nominal terms, the Friday close of 17,000 was only 12,319 in 2000 dollars. That was barely higher than the 2000 peak for the average of 11,723. When CPI (Consumer Price Index) inflation is taken into account the stock index has essentially gone nowhere. The effect of inflation is dramatically shown if the value of stocks is compared to a commodity such as gold, which has appreciated far more than inflation over the last 14 years.
The Dow priced in gold is discussed in video following the Read more >> jump.