So, no confirmation that this is a new bull market
The widespread media reports of record stock market highs are misleading. Yes, the dollar prices are higher, but the dollar values remain below their 2021 highs.
Important: Discussed below is the standard analytical practice used in the 1970s inflationary period. While we are not there yet, a few articles have recently included inflation’s effect on price (value) comparisons.
Because inflation erodes the U.S. dollar’s value, a higher 2024-dollar price compared to a 2021-dollar price does not mean a rise in value. For example, if the price of milk has risen in a time of inflation, a flawed conclusion would be that milk is now a more valuable commodity.
