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Investing in 1968, your S&P holdings would take until 1992 to regain their inflation adjusted starting value. The S&P has not always generated positive returns
by brownbat 8y ago
Investing in 1968, your S&P holdings would take until 1992 to regain their inflation adjusted starting value.
The S&P has not always generated positive returns relative to inflation.
Sometimes there are 30 year long dips.
- webninja 8y agoThat is demonstrably not true. 1968 was a positive year! 1968: +11%. 1969: -8.6%. 1970: +3.6%. 1971: +14.5%. 1972: +19.2%. $1 of S&P500 in 1968 would be worth $1.23 in 1978, 10 years later. There are large drops in some of the years, but they are usually followed by outsized rallies in the years afterwards. Source: Moneychimp’s CAGR of the Stock Market calculator. http://www.moneychimp.com/features/market_cagr.htm http://www.moneychimp.com/features/market_cagr.htm
- brownbat 8y agoInflation adjusted were the key words. Even your link admits poor performance during periods of high inflation, and gives several other example periods. But here was my original source: http://www.multpl.com/inflation-adjusted-s-p-500 http://www.multpl.com/inflation-adjusted-s-p-500 With your link, if you're just talking about value of the stocks and controlling for inflation, one dollar of stocks in 1969 grows to only $1.03 in December 1991.