Using the US city average (all items) CPI, adjusted to a 1982 -84 average base of 100, the average CPI readings were: 1) for 1925 = 17.5 2) for 1983 = 99.6 2) for 2002 = 177.1
At the outbreak of war, they were: 1) in 1914 = 10.2 2) in 1939 = 14 3) in 1950 = ~24 4) in 1991 = 134.6
In each of the main fall dates, they were: 1) in 1929 = 17.3 2) in 1987 = 115.3 3) in 2000 = 171.3 4) in 2001 = 178.3
I would have thought, however, that a GDP adjusted DOW comparison would have made for a better comparison. An inflation adjusted DOW appears more like a sttistical aberration designed to establish an overbought position.
This may well end up being the case, but before determining this the same comparison should be made from a number of different perspectives (ie: FX, inflation to PPI rather than to CPI, earnings valuation, as well as to P/E, to GDP /GNP, etc). Only in this way can a meaningful and valid consideration of the current status of the DOW be determined.
