How would the Dow look if inflation-adjusted? However, you can't adjust the price of investments by using the consumer price index. The CPI is used to measure the price growth of goods and services of final consumption; not investments.
Therefore, the Dow is adjusted on inflation by using a money-supply growth indicator. The Money Zero Maturity aggregate, in particular.
Obviously, the DJIA index hasn't been overpriced recently. It's still about ten percent below the long-term average.
Forget P/E. It's the inflation-adjusted Dow, which is a better measure of stock market valuation.
A white male with some professional experience in finance and investing.
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