Index Records

It is fair to say that most investors don’t devote the time and effort necessary to adjust their portfolios for inflation, but its impact cannot be totally ignored. An annual inflation of 2.4% a year becomes 38% in just 14 years. If the price of a stock goes up and inflation increases by the same amount, there is no net increase in purchasing power. The Dow has returned to an inflation adjusted record after bear market just four times since 1899. The first came on December 29, 1905 after whic...