While this is a chart that hardly anyone looks at bc it is a given that stocks only go up.
You should pay attention to it. Inflation-adjusted SPX is now breaking a channel
that has not broken since the Bretton Woods Agreement.
The price of SPX has to really explode higher to overcome inflation or inflation has to crack
rapidly or both. In a world of trillions upon trillions of $s in negative interest rates,
this may seem acceptable on the surface thx to lower and lower interest rates but not in a
world of rising interest rates. That is uncharted territory with so much debt created over so
many decades of credit expansion. In other words, this is not the 80's where private and public debt
was lower and US was an exporter.
In my view, we are entering a phase with unknown problems that can have huge implications
as to how investment capital shifts if this continues to break down and cause a SANP!
Remember money chases yield in real terms.
You should pay attention to it. Inflation-adjusted SPX is now breaking a channel
that has not broken since the Bretton Woods Agreement.
The price of SPX has to really explode higher to overcome inflation or inflation has to crack
rapidly or both. In a world of trillions upon trillions of $s in negative interest rates,
this may seem acceptable on the surface thx to lower and lower interest rates but not in a
world of rising interest rates. That is uncharted territory with so much debt created over so
many decades of credit expansion. In other words, this is not the 80's where private and public debt
was lower and US was an exporter.
In my view, we are entering a phase with unknown problems that can have huge implications
as to how investment capital shifts if this continues to break down and cause a SANP!
Remember money chases yield in real terms.
Comment:
Despite the recent rise the SP500 inflation-adjusted is still very much broken below the 50-year channel.
Comment:
Nothing has changed! Still broken
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