XOM’s REAL all time high

The Gist: (1) XOM is still 10% away from its inflation-adjusted (real) all-time high, which was set in September of 2007, and it is encountering resistance levels established around the same time. (2) SAPE and Market Cap to GDP point to real total returns over the next decade of 7-10% with dividends will playing a larger role than the 2000s cycle. (3) Total returns for ExxonMobil and the S&P500 are mean reverting series. One is mean reverting upward and the other is downward.

I hope everyone had a great eclipse.

Last Friday ExxonMobil closed at an all time high and press reports and tweets were rampant on the subject which sparked up this post.

However, we must remember that stocks are nothing more than a medium in which to increasing our purchasing power.

After inflation adjusting XOM share prices, you can see on the right the all time high in real term actually occurred in September of 2007 at $135.93 per share.

However there is still something very important going on in this next chart which is the observation that XOM’s inflation adjusted price is once again bumping up against real resistance.

Prior tests against resistance in 2014 failed miserably but in a span of 1 year it has now tested real resistance twice.

So if the stock were able to break through and start trending I think that would be something to pay attention to.

I want to stick on this chart for a little bit.