http://www.theundergroundinvestor.com/2006/11/a-i-think-most-are-not-records/ The definitive investment blog for investment news not discussed in the mainstream media Tue, 07 Feb 2012 23:27:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.theundergroundinvestor.com/2006/11/a-i-think-most-are-not-records/comment-page-1/#comment-2652 The Zen of Investing - SmartKnowledgeU™ » It’s the Difference Between Chasing Wealth and Actually Learning to Build Wealth Mon, 12 Mar 2007 03:43:36 +0000 http://www.smartknowledgeu.com/blog/2006/11/01/a-i-think-most-are-not-records/#comment-2652 [...] In November, 2006, this is what I was saying in the Underground Investor blog: “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.” The reason I made these comments back then is that on an absolute number basis, many record highs are in reality nowhere close to record highs. The major indexes of country specific stock markets are not inflation adjusted. [...] [...] In November, 2006, this is what I was saying in the Underground Investor blog: “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.” The reason I made these comments back then is that on an absolute number basis, many record highs are in reality nowhere close to record highs. The major indexes of country specific stock markets are not inflation adjusted. [...]

]]> http://www.theundergroundinvestor.com/2006/11/a-i-think-most-are-not-records/comment-page-1/#comment-136 The Zen of Investing - SmartKnowledgeU™ » A: The Top Mistake Investors Make Mon, 06 Nov 2006 02:27:15 +0000 http://www.smartknowledgeu.com/blog/2006/11/01/a-i-think-most-are-not-records/#comment-136 [...] Cheney’s comments are ironic because they are truthful in many ways but not from a surface interpretation. They are truthful only if you dig below the surface. As I have repeated many times, when I have dug below the surface I haven’t seen anything - not a single shred of evidence - that indicates that this current boom in the stock market is in fact, sustainable. However, even if the media isn’t giving the current administration credit for the recent stock market boom, they certainly have more than adequately covered a boom that isn’t (just refer to this blog entry to understand why it isn’t). All I’ve seen for the past couple weeks are headlines that scream “Dow hits new high!”, “Dow hits record high”, “Asian indexes hit record highs”, “Australian index hits record high!” and so on. [...] [...] Cheney’s comments are ironic because they are truthful in many ways but not from a surface interpretation. They are truthful only if you dig below the surface. As I have repeated many times, when I have dug below the surface I haven’t seen anything – not a single shred of evidence – that indicates that this current boom in the stock market is in fact, sustainable. However, even if the media isn’t giving the current administration credit for the recent stock market boom, they certainly have more than adequately covered a boom that isn’t (just refer to this blog entry to understand why it isn’t). All I’ve seen for the past couple weeks are headlines that scream “Dow hits new high!”, “Dow hits record high”, “Asian indexes hit record highs”, “Australian index hits record high!” and so on. [...]

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