Traditional Investments Fail to Protect Against Long-Term Dollar Devaluation



Home prices, as measured by the SP/Case-Shiller index rose in 16 of the 20 major regions surveyed.  Only Detroit, Las Vegas and Tampa continued declining.  Boston and Washington DC led in price increases with 2.6% and 2.5% gains.  Minneapolis also posted strong results. The data lags by three months.

The US Dollar also showed a moderate increase from April to May but did little to cut into the 36% devaluation experienced over the past 10 years.  Only Washington DC, New York and Los Angeles home prices protected one from the devaluation of the dollar.


May-11





1 month
1 year
2 years
5 years
10 years
Ten City Composite
1.1%
-3.6%
1.6%
-32.0%
29.2%
S&P
-2.0%
23.5%
46.4%
5.9%
7.1%


Atlanta
1.0%
-4.6%
-3.0%
-22.5%
-5.4%
Boston
2.6%
-3.2%
1.5%
-15.5%
22.6%
Charlotte
0.7%
-5.1%
-7.8%
-11.4%
5.6%
Chicago
1.5%
-8.1%
-9.5%
-32.8%
-0.1%
Cleveland
1.2%
-6.6%
-3.2%
-18.8%
-6.2%
Dallas
0.8%
-4.7%
-1.9%
-7.3%
3.5%
Denver
1.3%
-3.3%
0.2%
-10.3%
4.0%
Detroit
-2.6%
-9.3%
-11.5%
-49.9%
-42.7%
Las Vegas
-0.8%
-6.6%
-12.7%
-59.2%
-11.9%
Los Angeles
0.5%
-3.2%
6.2%
-37.9%
46.6%
Miami
1.1%
-5.3%
-4.1%
-50.3%
20.7%
Minneapolis
2.4%
-11.7%
-1.4%
-36.4%
-7.8%
New York
0.7%
-3.2%
-3.6%
-23.5%
41.7%
Phoenix
0.0%
-9.5%
-3.1%
-55.7%
-7.6%
Portland
1.1%
-9.1%
-8.5%
-23.2%
26.8%
San Diego
0.2%
-5.1%
6.7%
-37.9%
24.5%
San Francisco
1.9%
-5.4%
11.9%
-38.4%
0.2%
Seattle
0.9%
-7.0%
-8.3%
-21.9%
24.4%
Tampa
-0.5%
-9.5%
-10.9%
-47.4%
10.1%
Washington
2.5%
1.3%
9.1%
-26.4%
55.0%
$US Dollar
0.1%
-11.3%
-11.7%
-13.5%
-35.8%
Source: Asset Design Center

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