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.