[lbo-talk] Inflation/deflation illusion ?

Charles Brown cdb1003 at prodigy.net
Tue Feb 10 14:09:58 PST 2009


Inflation/deflation illusion ?   *   *   *

New York Times Off the Charts A 10-Year Stretch That's Worse Than It Looks

By FLOYD NORRIS Published: February 6, 2009

IN the last 82 years — the history of the Standard & Poor's 500 — the stock market has been through one Great Depression and numerous recessions. It has experienced bubbles and busts, bull markets and bear markets.

But it has never seen a 10-year stretch as bad as the one that ended last month.

Over the 10 years through January, an investor holding the stocks in the S.& P.'s 500-stock index, and reinvesting the dividends, would have lost about 5.1 percent a year after adjusting for inflation, as is shown in the accompanying chart.

Until now, the worst 10-year period, by that measure, was the period that ended September 1974, with a compound annual decline of 4.3 percent.

Full: http://www.nytimes.com/2009/02/07/business/07charts.html



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