Charles H. Dow, Father of Value Investing
It's All About the Dividends
Dow Theory: Buying in Scales
How to Avoid Losses
When Dividends are Canceled
Cyclical and Secular Markets
Inflation Proof Myth
What is Fair Value?
Issues with P-E Ratios
Beware of Gold Dividends
Gold Standard Myth
Lagging Gold Stocks?
No Sophisticated Investors
Dollar down, Gold up?
Problems with Market Share
Aim for Annualized Returns
Anatomy of Bear Market Trade
Don’t Use Stop Orders
How to Value Earnings
Low Yields, Big Gains
Set Limits, Gain More
Inside a Moneymaking Machine Like No Other
The Fuzzy, Insane Math That's Creating So Many Billion-Dollar Tech Companies
Berkshire Hathaway Shareholder Letters
Forex Investors May Face $1 Billion Loss as Trade Site Vanishes
Why the oil price is falling
How a $600 Million Hedge Fund Disappeared
Hedge Fund Manager Who Remembers 1998 Rout Says Prepare for Pain
Swiss National Bank Starts Negative
Tice: Crash is Coming...Although
More on Edson Gould (PDF)
Schiller's CAPE ratio is wrong
Double-Digit Inflation in the 1970s (PDF)
Quick Link Archive
Dow P/E: 20.45
Dow Yield: 2.31%
S&P 500 P/E: 24.25
S&P 500 Yield: 1.99%
10-Year Note Yield: 2.26%
30-Year Note Yield: 2.80%
WSJ September 22, 2017
DOW VALUE WATCH
Dow Fair Value (50% Principle):
2015 High: 20,125.58
2009 Low: 6,469.95
Fair Value: 13,297.77
+33.75% above fair value
as of February 5, 2017
Index Additions and Deletions
Tools & Resources
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- Yellen to Leave Fed Board When New Chief Takes Over
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- Stanford Over Harvard: Not A Moral Failure, But Rational Economics
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- Walmart ‘Black Friday’ 2017 Ad Deals: How Good Are They?
- Why Elon Musk says he needs to be in love to live a happy life – Moneycontrol.com
- Turning GE around will be a challenge for new boss Flannery – The Australian
- What is the purpose of tax reform?
- What five years of Abenomics has and has not achieved
- Britain’s 1970s retread
Games People Play…with Statistics
In an article titled "'Avatar' could blow 'Titanic' out of the water on weekend" the Marketwatch.com stretches the imagination of revenue generated by the movie Avatar as compared to the "other" highest grossing movie Titanic. So far, Avatar has grossed $1.7 billion as contrasted with Titanic's $1.84 billion.
The oddity is the fact that Titanic was produced in 1998 and although inflation has been very low in the years since, the inflation adjusted value of the $1.84 billion is now $2.4 billion. MarketWatch.com as part of the Wall Street Journal, now owned by News Corp., should exhibit better quality in their financial journalism. The fact that MarketWatch.com doesn't mention inflation at all only furthers the misinformation that is widely diseminated by the media. Anyone who may be uninitiated about the nuances of inflation will take fantasy as fact.
On our site, in the righthand column, you can find two inflation calculators in our "Guaranteed" Rates section. The first calculator is from the Bureau of Labor Statistics that starts in 1913 ( in an ironic twist the starting year almost implies that inflation began when the Federal Reserve was created. Of course, we know this isn't true but it seem odd to begin the data in 1913.) The second calculator goes as far back as 1800 and is based on the CPI figures from the Historical Statistics of the United States.
A good resource for discerning inflated or skewed statistics can be found in the appropriately titled book, "How to Lie with Statistics." -Touc.