Item — HN Reader

I don't think this is correct. Sure, it reached the "same number" but I don't think the indices are inflation adjusted, so the value isn't the same.

Edit: Here's a brief explanation using the DJIA as an example http://www.npr.org/blogs/money/2013/03/05/173515767/the-dow-...

3 comments

On one channel it was asserted the inflation adjusted number would be 7000. And of course had you been an a NASDAQ index 'fund' it means you would still be negative from 2000 as you're 15 years of fund fees would still have been subtracted. Mostly it is a pretty robust signal that the 'stigma' of Tech has largely past. So we're ready for another bubble!

While inflation can be seen as a pricing factor, the way the Dow is calculated is unique (in a bad sense), and it's the worst example and not applicable to Nasdaq. Here's the methodology behind Nasdaq (very similar to other international indices) https://indexes.nasdaqomx.com/docs/methodology_COMP.pdf

Yes - definitely more of a symbolic lesson. I remember a comment from Jim Rogers [0] that I can't seem to find to the effect of, "The lesson from Japan is bubbles take decades to recover form, not years." This is symbolic that we've finally recovered.

[0] http://en.wikipedia.org/wiki/Jim_Rogers