The Myth Behind Record Highs in the Global Stock Market Indexes

November 1, 2006 -

Recently, headlines about record recent highs in the U.S. Dow, the India Sensex, and the U.K. FTSE have dominated financial headlines. However, 99% of these articles never explore the new index numbers in the proper perspective. Just as I have mentioned in numerous previous blogs that paying attention to the U.S. Consumer Price Index as a proxy for real inflation or the Consumer Confidence Index as a proxy for true economic strength is dubious at best, so are the reports about all these record global markets. Why? Because 99% of these articles, and certainly almost all of them that proliferate throughout the mass media, never discuss the rise of these indexes in inflation adjusted numbers. So let’s look underneath the covers or inside the Halloween pumpkin, and see what we find. Read more …

2 comments November 1st, 2006