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Well if this was Nov 1999 (one year before the crash), S&P 500 was at $1.4k, so it would've taken you 14 years for your position to be in the green again
by andreilys 7y ago
Well if this was Nov 1999 (one year before the crash), S&P 500 was at $1.4k, so it would've taken you 14 years for your position to be in the green again
- ahelwer 7y agoNow do this experiment with reinvesting dividends instead of just looking at the chart.
- BozeWolf 7y agoAdditionally you should not spend all your money buying stocks at once. Spreading it across those 14 years would have been quite profitable.
- andreilys 7y ago27% return over 14 years with dividends reinvested (1.86% annualized)[1]. Although when we calculate it with inflation its -7% and -0.5% annualized. Not exactly a compelling argument since you could've made a risk-free return via savings accounts (Wealthfront currently has 2.3%, which I'm sure has been higher in the past). [1] Nov 1999 one year prior to crash, to Nov 2012 https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/