Chart o’ the Day: The Inflation-Adjusted Nasdaq Composite

The other day we threw up the Nasdaq Composite chart going back to the 80’s in nominal prices. It’s a bit misleading given how long ago that old record high was (fourteen years is forever in market time). Christopher Mistal at the Stock Traders Almanac creates an inflation-adjusted Nasdaq chart below vs the nominal price plot:

At its present price NASDAQ needs approximately another 18.2% to reach its nominal all-time closing high from March 10, 2000. However, when adjusted for inflation (chart below) NASDAQ needs to climb in excess of 60% as its inflation adjusted high is nearly 7000. Fourteen years of inflation has eroded the dollar’s purchasing power by approximately 40%. In 2014 dollars,

nas inflation

Source:

Inflation Adjusted NASDAQ High Nearly 7000 (Stock Traders Almanac)

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