A chart is worth a thousand words!!!

[Joanne98]

[namsdubmo]

1. devestating

because technical analysis suggests that when a double bottom breaks, the target is distance of the double bottom up to the top

(120-80 = 40

80 - 40 = 40

target = 40

YIKES!

[gristy]

4. Applying logs to your double-bottom analysis

log(120)-log(80)=0.176
log(120)-log(x)=2*0.176
x=10**(log(120)-2*0.176)=53

Not a whole lot better, but with your approach you can too easily get a zero or negative target

[Dogmudgeon]

2. A chart from 1945 would be even more interesting

I don't think the dollar has ever depreciated so rapidly for such a long time -- a 40% drop in 5 1/2 years.

--p!

[namsdubmo]

3. it suggests that we've been in a bear market since 2000

because adjusted for inflation, liquidated funds from the market have never bought more than they did in 2000

in a REAL bull market, you actually do reach new points of wealth (new actual all time highs) over time with funds in the market

[Dogmudgeon]

5. That is THE point

Real wealth in this country has been destroyed to a great extent by almost 30 years of trading junk paper. Speculation is rewarded, but solid production and economic fundamentals are penalized. And there is NO incentive to change that just yet.

Sometimes it's worthwhile to take a chance on new ventures, but the system can be gamed easily now. It's the financial equivalent of smash-and-grab street crimes.

--p!

[namsdubmo]

6. smash and grab, indeed

'It's the financial equivalent of smash-and-grab street crimes'

people either see that or they dont

the 'innovation' or the last few decades had been the new religion of de-industrialization, and maintaining a standard of living via debt

and both parties are in on it

[Gandolph]

7. sad n/t

[SlowDownFast]

8. For those who own gold and silver

you made the right choice to preserve your wealth.

There will be natural corrections (gold is $974 and silver $19.81 as I write this), don't be surprised to see a significant drop soon - next run will head well past $1000 gold and $20 silver: everybody's fleeing out of the market into various commodities.

If, however, there is talk of the Fed raising rates on the dollar, then perhaps we may enter hyperdeflationary territory - meaning it might be a good time to sell PM's (precious metals) - at least SOME of them, as it may or may not drive PM's down significantly.