The Myth of the Modern Stock Market

The stock market is "up." The Dow is over 11,000. We wonder how much of this is accounted for by inflation. But even if it represents solid equity achievement, what is it telling us? We remember in the late 1990s reading a spate of articles explaining how brand name, global corporations were good as gold. These stocks need to be passed down from generation to generation, like family heirlooms, we were told on more than occasion. A few years later the NASDAQ collapsed and lost half its value.