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Current Dow in a gold range and, hence, is astable. To define borders of this instability, we should measure the market concerning the gold price. Frequency rate of the current price of gold to the initial price which is already exceeded, or a 10-fold price level of 1929 (from $3,500 to $4,000) will be a point of correction of Dow. A problem here more difficult, than simple frequency rates. We already saw that now more, than there are enough active money to support Dow's high figures, but trading deficiency exported a part of this money, market crash ' waste ' bonds, falling of original cost of property and S&L failures have eliminated much that circulated inside.
In terms of real inflation in Dow's our economy should reach figures from 5,000 to 10,000 anew to be stabilised from the top border, or to fall more low 1,300 from the bottom border. As we exported in many respects our inflation, we do not see frequency rates in our own economy. Dow-Johns's industrial index should reach at least 3,500 to absorb the money created by our federal debt. As much our currency ' is exported ', i.e. buys the foreign goods and as the currency of the USA replaced many years gold, as the international medium of exchange, we can expect that we will see frequency rates of the price of gold in US dollars in trading figures of other states.
It not coincidence that when the Japanese index of Nikkej has reached 40,000, it reflected frequency rate of the price of gold approximately $400 for ounce. When the price of gold and Nikkej have divided a single whole, Nikkej has fallen, also as Dow in 1929. In 1992 it made 17,000.
The Underestimated Dow assumes that or the share market is the best place for investments, or the condition of our industry worsens and on the verge of crash. Definitely on a global scale our share market has an undercharge concerning exact financial correction. The trading index of Nikkej unambiguously specifies, where our inflation has gone. Inflation of the USA has led the Japanese share market to unknown heights. From our prospect it should be considered, how good news. Nikkej took the big push. Absence of trading balance has detained our consumer inflation.
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