On Sun, 27 Jan 2013 21:42:13 -0600, Martin Eastburn
wrote:
snip
The big lie is simply a lot of the companies that went bust were
in the Dow and they were replaced with other companies.

In other words - the books have been cooked - slowly but the name
never changed.

Should be the New Dow or the 2012 Dow..... Dow12 maybe now the Dow13.
snip
==========

Even if there were no change in the composition of the Dow,
this neglects the effects of inflation.

Dow 14000

Oct 2007 CPIU 208.936
http://www.bls.gov/news.release/arch...i_11152007.pdf

Dec 2012 CPIU 229.601
http://www.bls.gov/news.release/pdf/cpi.pdf

Inflation C/F 1.0989058851

Oct 2007 Dow
in Dec 2012$ 15384.68

In inflation adjusted terms a 14,000 Jan 2013 Dow,
neglecting change of component companies, is down 9%
compared to a 14,000 Oct 2007 Dow.

When the combined effects of the change of base and the
understating ("adjustment") of the CPI-U are considered, the
shortfall is much greater. Unless you own a brokerage or
are a broker, the market is a sucker's game.



--
Unka' George

"Gold is the money of kings,
silver is the money of gentlemen,
barter is the money of peasants,
but debt is the money of slaves"

-Norm Franz, "Money and Wealth in the New Millenium"