*** Note: This post is of a very simplified calculation. There's nothing professional in it. ***
The numbers are appearing to break new highs. USA has broken it's high of 14198 in 2007 while STI appears to be languishing far below the 2007 high of 3906.
But is it really due to nominal value or currency value?
I shall make a simple comparison using USD to SGD as a simple consideration.
Adjusting for Currency Value + inflation
********************************************************************
Year 2007:
1 USD = 1.55 SGD
Dow Jones hit a high of 14198
Year 2009:
1 USD = 1.5 SGD
Dow Jones hit a low of 6469
Year 2013
1 USD = 1.23 SGD
Supposed value of SGD (simplified assumption) remains a constant,
14198 will work out to be 17892 (14198 / 1.23 * 1.55)
6469 will work out to be 7889 (14198 / 1.23 (Read more...)...