Adjusted Stock Price Financial advisors will often tell us of the steady increases available only through the stock market and present us with beautiful charts showing the relentless march of the the stockmarket ever higher and to the right. But what about inflation? How does the stock market perform when inflation is taken into consideration? After we take the loss of purchasing power into account have all the gains disappeared? When adjusting stock prices for inflation we typically use the US Bureau of Labor Statistics Consumer Price Index CPI-U.  Prices are then calculated in "real" dollars. That means that the price is adjusted so that we can see what it would have cost if prices … [Read more...]