Quote:
Originally Posted by HardDrive
I'm not saying were doomed. I'm simply trying to understand how the overall value of the stock market expanded 11 fold in 30 years, when it had taken 76 years to get to 1000.
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I recall flipping through a book called "Dow 3000" while in my MBA program around Fall of 1987. It predicted a sharp rise in the Dow, which was much lower than 3000 at the time. I believe it did look at the cheapening of money, like Sammy mentions.
If the stock market were an engine, and if money were the intake air, then monetary policy bolted a turbocharger on and that brings us to today. The engine threw a rod about three years ago.