The chart below compares the current inflation adjusted stock chart to a chart of the period from 1964 to 1984 adjusted for inflation and adjusted so the peak in 1966 matches the peak in 2000. Historical comparison charts are generally useless, but the similarity here is at least interesting.
Based on the current historical trend, we still have a long way to go before reaching bottom. It is expected that the bottom will be between 4,000 and 6,000 on the Dow Jones Industrial Average before we start seeing growth in the stock market again. Not a great place to put your money given that the stock market averages a return of only 1.5% per year when adjusted for inflation!
Related posts:
