On Fri, 13 Mar 2009 19:03:00 -0500, Ignoramus32252
wrote:
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S&P 500 in 1966: 93.3
S&P 500 in 2009: 756

CPI Deflator in 1966: 31
CPI Deflator in 2009: 211

S&P 500 annualized capital gain in the last 43 years, inflation adjusted: 0.44% per year.
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FWIW

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Morgan Stanley Says S&P 500 to Drop 25%, Cuts Outlook
By Lynn Thomasson

March 13 (Bloomberg) -- The Standard & Poor’s 500 Index may fall
25 percent in the next few months as earnings slump for a seventh
quarter and the recession deepens, Morgan Stanley said.
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U.S. stocks are still expensive even after the S&P 500 dropped 52
percent in 17 months, according to a method used by Benjamin
Graham, the father of value investing and mentor of Warren
Buffett. He measured equities against a decade of profits to
smooth out distortions, a method that shows the S&P 500 traded at
14.5 times earnings yesterday, according to data compiled by Yale
University Professor Robert Shiller. At the bottom of the three
worst recessions since 1929, the average ratio fell below 10. To
reach that, the S&P 500 would have to sink more than 30 percent.

Plunge to 560

Should the S&P 500 follow Todd’s forecast, the index would tumble
to 560 and then surge 47 percent to finish 2009 at 825. Wall
Street equity strategists lost credibility last year when none
predicted a down year and the average forecast was for a gain of
11 percent, according to data compiled by Bloomberg. The stock
index plunged 38 percent, the steepest decline since the Great
Depression.
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http://www.bloomberg.com/apps/news?p...tbQ&refer=home


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).