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, Fri, 11 Mar 2011 07:48:29
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11 years ago, S&P500, the broad market benchmark index composed of 500 largest publicly traded corporations in the US, was at over 1500 in March '00. Today, 11 years later, it is hovering around 1300. Your entry into market 7 years ago happened to be excellent timing, near the bottom of a near-40% market correction that ended in 2003. Even with that outstanding timing, you still lost more than 50% of your purchasing power in those 7yrs, as measured in prices for necessities like gasoline, food commodities (retail price has not gone up as much, hence the margin squeeze on corporations and their shareholders), and all industrial and monetary commodities that can not be conjured into existence.
Inflation rate and nominal return on capital do not track each other neatly . . . that's why there's a term called "stagflation," and we are in it, and have been in it for a decade.
The need for people to buy stuff is also called division of labor. That's what makes the economy work. As much as I enjoy fixing my own car from time to time, I'm also aware that if we all had to grow our own food and sow our own clothing, we'd all live very poor lives. Small towns have their charms, but they certainly do not provide self-sufficiency. With gasoline price substantially, the cost of living in small towns are increasing substantially . . . that's one of the reasons why house price in exurbs (areas further outside than the suburban beltway towns) have tanked.
posted by 76.118.39...
, Thu, 10 Mar 2011 15:51:59, Fri, 11 Mar 2011 08:46:38
, Thu, 10 Mar 2011 13:48:51, Thu, 10 Mar 2011 11:30:42, Thu, 10 Mar 2011 13:40:56, Thu, 10 Mar 2011 14:22:37, Thu, 10 Mar 2011 15:29:28
, Fri, 11 Mar 2011 10:49:48
, Fri, 11 Mar 2011 23:00:58, Thu, 10 Mar 2011 10:51:20, Thu, 10 Mar 2011 11:56:31, Fri, 11 Mar 2011 07:48:29
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