Here’s The Real S&P 500 Chart That No One Ever Talks About

October 8, 2013 Leave a comment

Here’s The Real S&P 500 Chart That No One Ever Talks About

J.C. PARETS, ALL STAR CHARTS OCT. 7, 2013, 1:42 PM 3,386 5

As market participants we look at charts every day for a variety of reasons. But whether we’re doing so for idea generation, risk management or entry/exit points, we’re charting to go out there and try to make money. Other times, however, looking at longer-term charts just helps to put things in perspective. With the day-to-day noise out there coming from the government, media and investing public, sometimes it’s important to bring in a longer-term view to supplement our short-term outlook. Here is a chart of the S&P500 adjusted for inflation using the Consumer Price Index, which is released monthly by the Bureau of Labor Statistics. What still stands out to me is the consistency of the lower lows and lower highs since the year 2000. Hardly the uptrend and bull market that we hear about so often. You rarely see a chart like this because the “all-time high” headlines are so much sexier. No one likes to add the,“But in real terms we’re still far from it”. Who wants to buy a newspaper that says that? I know I wouldn’t. But fortunately I’m not in that business and I can share with you guys any chart I want. And I think it’s important that when I speak with investors, they understand how in Real terms, not only is the S&P500 not at all-time highs, but actually down 20% over the last 13.5 years. It’s all about purchasing power isn’t it? Or in this case, the lack there of?

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Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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