Quote:
Originally Posted by CoachKandSportsguy
Asset inflation, everywhere, which is much different than consumables living CPI inflation, is everywhere. In the chart below, you will see that the liquidity from the FED has pushed assets to redonkulous levels, housing prices are not CPI, but owners equivalent rent is, so there will be increases in CPI but that will level off as well and fall back to near normal records. .
The interest rate increases will change this asset valuation levels, so for those looking, best to just wait, as the prices will return to about the 2019 ending levels, there about. . just have your cash ready and please have patience. . . check on your FOMO, (Fear Of Missing Out) you haven't in any way, just wait.
Chart is price to sales ratio of SP500 historical ratio. . . truest measure of valuation as revenue is most scrutinized for fraud.
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Interesting BUT.......... When to buy and when to sell THAT IS THE QUESTION.
The S&P year to date has fallen nine percent. The Russell 2000 has fallen 14% year to date. The CPI consumer price index has hit 8%. Assuming you are AVERAGE and lost 9% in the market. We ALL are paying 8% more for goods some of which we can decide not to buy at this price others like food and gasoline will get painful for those who cannot afford to pay more, NET loss not sure how the math works is it 9 plus 14 average 9+14=23 divided by 2= 11.5%. No it is not as the same stocks are in both indexes. So using the S&P as average normal and CPI as average effect on all it is like anything else FUZZY MATH 9+8%=9.72% lost. In REAL MONEY almost 10% has DISAPPEARD.