Quest for a New Metric

January 30, 2013 — Periodically, I get hate mail…usually from non-subscribers who don’t take  the time to consider other points of view.  But when people question the  Aggregate Index and blather on about markets, it’s time for a quick refresher  course on how money degrades over time.  So this morning, we’ll look at some of  the hard realities of how markets perform when money’s bring watered-down.  As  I’ll show: 2007 was only the market top if you ‘drank the Kool-Aid’ and don’t  correct for inflation.  But that, however, leaves us with a new problem: If you  can’t trust market pricing to be good indicators (since the underlying money is  corrupted) what then becomes the investment yardstick?  First, however, a bit of  mental tai chi with overnight headlines and a strong second cup.

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