Hi Clive, In looking at your chart, am I correct that it is not adjusted for inflation?
I understand how to apply inflation point to point, i.e., 1990 to 2014 but I'm not sure how to apply it to a chart like yours. Would you spread each year's inflation over the data points proportionally, i.e., if inflation is 2.52% for the year, would one deflate each day's data point by 0.01%, assuming inflation was a smooth curve for the year, and then chart from there? (I chose 2.52% because there are approximately 252 trading days in a year.)
I assume, if this is a good way to account for inflation, that a data point that is positive would have inflation subtracted from it, right? For a down day would one subtract from it as well, making it even lower? I.e., a -1.00% for the day become -1.01%.
Thanks for your help.
Allen
