Friday, April 20, 2012

VLIC Swing Chart

This is a 30% swing-chart of the Value Line Composite Index. It is NOT inflation adjusted, but unlike major US stock indices it is equally weighted. In 2007 the DJI had printed a celebrated new All-Time-High well above 1998 and 2000, while the VLIC could not even exceed its 1998 top. Instead in March 2009 it undercut the crash-low of 1987! Even a glimpse view at the VLIC makes one understand how fake and distorted that QE-FED-Apple-driven market is. Just wondering how an inflation adjusted VLIC would look like and if the S&P and DJI will finally also crash below 1987-levels in 2013-14.