http://dshort.com/articles/2010/mega-bear-2000.html The "Real" Mega-Bears August 29, 2010 weekend update It's time again for the weekend update of our "Real" Mega-Bears, an inflation-adjusted overlay of three secular bear markets. It aligns the current S&P 500 from the top of the Tech Bubble in March 2000, the Dow in of 1929, and the Nikkei 225 from its 1989 bubble high. Click for a larger image This chart is consistent with my preference for real (inflation-adjusted) analysis of long-term market behavior. The nominal all-time high in the index occurred in October 2007, but when we adjust for inflation, the "real" all-time high for the S&P 500 occurred in March 2000. Here is a nominal version to help clarify the impact of inflation and deflation, which varied significantly across these three markets. Note: These charts are not intended as a forecast but rather as a way to study the today's market in relation to historic market cycles.
