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Shouldn't this be compared to an alternative like buying bonds or holding the money in an average bank account? If inflation ate up the gains from the index val
by FrojoS 10y ago
Shouldn't this be compared to an alternative like buying bonds or holding the money in an average bank account? If inflation ate up the gains from the index value increase, wouldn't the same be true for other forms of investment?
"The Standard & Poor’s 500-stock index has posted double-digit gains for the second year in a row. But the index is still below where it was in early 1999."
Is this true when adjusted for inflation?
https://www.google.ch/search?hl=en&q=Standard%20&ei=EuQEWOaqIojnswGbiqPgBw#hl=en&q=Standard+poor+500 https://www.google.ch/search?hl=en&q=Standard%20&ei=EuQEWOaq...
- base 10y agoAdjusted for inflation seems to be higher than in 1999 in the last two years http://www.multpl.com/inflation-adjusted-s-p-500 http://www.multpl.com/inflation-adjusted-s-p-500
- OscarCunningham 10y agoRight, there are two questions: "What should I invest in?" and "How much do I need to save?". In answering the first question inflation-adjusting is useless because inflation hits all investments equally, but in answering the second you do need to adjust for inflation.
- FrojoS 10y agoThanks! I think I get it now. The message of the article/figure is "You probably need to save more than you think in order to retire with X USD in savings."