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THE DOW OVER THE PAST 10 YEARS , THE DOW INFLATION AJUSTED 2000 -2010, 1 = .35 NOT SO GOOD
Wealth erosion via the currency of your home is a very very big deal, if you had been investing over the past 15 years or for that matter trying to hold on to your wealth. You should be very aware of your wealth being inproved or eroded via the currency exchange which is a by porduct of the health of an overall economy or the unhealthness of an overall economy.
Look if you Where holding equities or bonds or cash or anything else for that matter over the past decade the said subject matter I am writing about has been exponential.
In 2000 the dollar was .80 to the euro and had hung around that range for a few years. From 2000 to 2008 the euro dollar exchange went 100% to the strength of the euro. 1.6 Right now it is 1.37 10/19/10. Think about your wealth. You can argue was it Europe getting stronger as an overall economy or the UNITED STATES GETTING WEAKER? I think we all know that answer two wars and no wants to pay for them, not to mention sending the middle class to the streets to become the poor. Jobs in China don’t do a lot for the strength of the U.S Dollar.
Before I go off on a rant of American ignorance, let me get back to weighting your wealth which good mangers and economist do. With your basket of equities or bonds over the past decade, the traditional weighting measure has been the dollar or over the past three of four decades oil.
Use real-estate use currencies use any of them if you are in the U. S. your wealth has been at best case (weighted against foreign currencies (50%). Weighted against gold (80%) weighted against oil (80%). And of course your equities and bond s have done nothing they are in the same spot they where a decade ago. So the reality of the situation is your wealth over the past decade in the U.S. IS DOWN 50 TO 80 %.
Now if you LIVE IN EUROPE THE OPPOSITE IS TRUE even if your equities went down the strength of you currency more than made up for all of that if you where holding bonds or cash you wealth increased 50 to 80 % via the strength of the EURO. I remember in the 90s euro government feds. Where saying we hope to have a currency trading equal to the U.S. DOLLAR.
If someone in 1999 told you the U.S. would be involved in two wars and 13 billion in debt and the Euro was 1.37 and had been at 1.60 and the U.S. DOLLAR WAS TRADING equal to the Canadian dollar, and the nasdaq was 2400 and had been well under 2000, and the dow was 11,000 and had been under 7000 a decade later . YOU WOULD HAVE BEEN SENT TO THE HOSPITAL THAT IS IN A STRAIGHT JAKET. And had your own comedy show. What s diff. a decade of American ignorance makes.
Kevin d. blanch 10/19/10
THE S&P IS 1=.35 THE NASDAQ 1=.22 EVEN WORSE
The U.S. stock Market > Weighted Against > > > Gold 1 = .21 The Euro 1 = .55 Oil 1 = .18
http://www.youtube.com/watch?v=XrjTCaHRoI8
THE DOLLAR AND YOUR WEALTH
9:33
October 07, 2010, 02:13 PM |
Your wealth has been crushed over the past decade. SUPPLY SIDE ECONOMICS HAS FAILED 30 YEARS OF IT. Its time to take a diff. approch.
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