10 May 2011

Long-term stock valuation charts.  Data source is the Shiller data - I cannot take credit for what he has compiled.  I would like to see this data calculated with Shadowstats CPI - I have generated this before, and might try doing this when I get the time. 

 Time to buy is when dividend yield is above 500 month moving average.  It used to be .06, but that doesn't seem realistic any more.

 Three peak pattern looks similar to that of the 30s and 70s.

"In all likelihood world inflation is over."
International Monetary Fund CEO, 1959

See how long interest rates can stay low?

Hold long at 60% - it is hard to read.

"Self-importance requires spending most of one's life offended by something or someone."
Carlos Castaneda