*of course there is no cause for alarm for Inflation. Since the Fed, with Congress' conspiratorial consent, I might add, made the decision to grease the greedy banking hands of its members by creating an environment of free money with little or no regulatory oversight, a housing mortgage bubble SURPRISE appeared, and WALLAH, poof you're dead! These glad handing scumsucking bloviating schiesters have ruined my country, possibly for all time. How could you think it was okay to have my mothers house rise from $36,000 in 1974 to $340,000 in 2007? Economists should hide their head in shame for the havoc they have wreaked on us all.
Japan, the US, Bubbles and Deflation
December 6, 2009 new update
Here is a series of real (inflation-adjusted) monthly close charts of the Nikkei 225 and the S&P 500 since 1970 with their respective annualized rates of inflation shown below. This series also includes an overlay chart with the two index peaks aligned. The overlay retains Japan's inflation to illustrate a point discussed later in this post.
Bear Turns to Bull?
December 4, 2009 updated each market day
The S&P 500 closed the day up 0.54%, which gives us a weekly gain of 1.7%. The index is 63.5% above the March 9th close, which is 29.3% below the peak in October 2007. Here is a StockCharts.com snapshot showing the relationship of the S&P 500 to its 50-and 200-day simple moving averages.