"Secular Bull Market in Equities" (Musical Tribute)

I heard this quote on CNBC today and there was more head nodding than I could stomach. Apparently the financial "experts" have not yet heard that the 1980s and 1990s are actually over.

The following chart shows the S&P 500 index adjusted for inflation (March 2013 dollars).


Click to enlarge.

The next chart shows real wage and salary disbursements per capita (March 2013 dollars).


Click to enlarge.

Red exponential style trend lines in both charts were generated using an artistic license. Good enough for government work! In any event, both trends have failed spectacularly. I would argue that neither are in any condition to resume their former trends over the long-term. Put another way, I have absolutely no desire to invest in the stock market after it has cyclically doubled. Call me crazy if you must.

As a side note, real wages per capita tend to rise during economic recoveries as more people get put back to work. As seen in the chart above, I guess this recovery is special though. And when I say special, I actually mean FUBAR. If real wages per capita cannot rise during this expansion then what will they do during the next contraction? Don't answer. It's rhetorical. Sigh.

The 1980s and 1990s really are over. This is not a popular theory on CNBC. Perhaps it is because CNBC was launched on April 17, 1989. They may not know financial value but perhaps they do know sentimental value. I'm certainly teared up just thinking about the one hit wonders of the 1980s.

Here in my car
I feel safest of all
I can lock all my doors
It's the only way to live in cars

As seen in the following link, the future is now.

December 25, 2012
Program to help homeless living in cars off to slow, steady start

In the year since Seattle launched the Safe Parking pilot project for homeless people living in their cars, just two churches have opened their parking lots, providing a total of seven spaces. But the city is expanding the project and hopes to provide more services.

And lastly, The Market Ticker has an interesting take on what the S&P 500's dividend yield will get you over the long-term.

The S&P 500's dividend yield is down to 2.03%. May I also remind everyone that the only actual long-term value in common equity is in fact the dividend cash flow off that equity since all companies eventually cease to exist. Think I'm wrong? Where's RCA, a powerhouse that would never die? Uh huh. There are thousands more just like them.

That was certainly true where I once worked. Sierra Entertainment was founded in 1979. It was "aborted and shut down" in 2009. It only survived 30 years. I'm not sure why the word "aborted" was needed when "shut down" would seem to suffice. But then again, I left as a rat would leave a sinking ship in 1999. I can certainly empathize with the sentiment. Sigh.

See Also:
Sarcasm Disclaimer

Source Data:
St. Louis Fed: Custom Wage Chart
St. Louis Fed: Custom S&P 500 Chart