Quote of the Day
“A man who wants to lead the orchestra must turn his back on the crowd.” – Max Lucado

For some long-term perspective, today’s chart illustrates the Dow adjusted for inflation since 1900. There are several points of interest. For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s. Also, the inflation-adjusted Dow is a little more than double where it was at its 1929 peak and trades 65% above its 1966 peak — not that spectacular of a performance considering the time frames involved. More recently, the Dow has retraced 60% of the financial crisis bear market and is currently testing post-crisis highs. It is interesting to note that the 70% gain produced during the post-crisis rally is actually slightly more than what the inflation-adjusted Dow gained from its 1966 peak to today.

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