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Stocks are stagnating. * S&P500 YTD: Up 6.7% * S&P500 1 Year: Up 9.7% * S&P500 5 Year: Up 85.4%
by harryh 10y ago
Stocks are stagnating.
* S&P500 YTD: Up 6.7%
* S&P500 1 Year: Up 9.7%
* S&P500 5 Year: Up 85.4%
- vidarh 10y ago(EDIT: Didn't notice that the emphasis in parent is a quote from grandparent. So consider the numbers below to further support parent rather than contradict it) Your numbers doesn't show that at all. 9.7% up in a year is roughly 0.775% average per month compounded. Assuming even growth through the year, which is obviously a simplification, to reach 9.7% at the end of the year you'd want to have appreciated 6.3% by now, so 6.7% doesn't sound all that bad. 85.4% over 5 years is roughly 13%/year compounded. Since 1950, the annualised average return of the S&P500 have fluctuated between -3.6% and 19.3% [1], so both the 1Y and 5Y are well within the norm. If 9.7% were to hold through a full decade, it'd still be far above the median per-decade averages. [1] http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm http://www.simplestockinvesting.com/SP500-historical-real-to...
- deleted 10y ago[deleted]
- vecinu 10y agoI think you're missing the fact that the OP was responding to "rm -rf /" and saying that stocks have not been stagnating.
- vidarh 10y agoAh, yes, I didn't notice that the emphasis was meant to be a quote. Thanks.
- readams 10y agoI'm pretty sure his numbers were intended to show that stock returns are currently very healthy and not stagnating.
- sharemywin 10y agoSep05, 11' - 1154.23 Aug22,16' - 2181.67 up ~ 89% although, sept was down about 200 points from may and oct. And were only up 60% from the 07' peak.
- deleted 10y ago[deleted]
- sharemywin 10y agoBut it's hard to know whether those valuations are real with quantitative easing and near 0% interest rates.