Stockmarket Bubble - Aussie Stock Forums

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  1. #1

    Default Stockmarket Bubble

    ok, so i see alot of you flashing around graphs about how the 6900 peak of the stockmarket was a bubble,

    and that the stock market should increase in a linear fashion.

    eg. 500 - 1000 - 1500 - 2000, in a even year spread

    but how can this be so?

    that would just indicate a decline in growth,

    - 100% - 50% - 25% -etc

    while say a 5% stock market growth/[given timeframe] would imply the trend leading up to the current downturn.

    i hope that all made sense.

    so it seems to me exponential stock market growth would be normal and this is not a return to where ppl think the share market should of been all along.

    summary economic/global/national/industry growth = sharemarket growth

    have i got this right?

  2. #2
    Pigs In Space GreatPig's Avatar
    Join Date
    Jul 2004

    Default Re: Stockmarket Bubble

    Quote Originally Posted by beerwm View Post
    the stock market should increase in a linear fashion.
    It's not so much that the market "should" do anything, but over a very long time (100 years or more) the general trend has been up at around 4%-5% pa, based on a long-term chart I saw recently.

    And yes, that's not linear but rather logarithmic (or exponential if you prefer - looks linear on a log chart).


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