3 ms·
And what are the inflation adjusted returns of Stocks over the last year or two?
by dragontamer 3y ago
And what are the inflation adjusted returns of Stocks over the last year or two?
- tekla 3y ago3%. Still higher than inflation protected bonds.
- metaphor 3y agoHow'd you figure? Looking at the S&P 500[1] over the past two years relative to today's close: Aug 15, 2023 Close = $4,437.86 Aug 15, 2022 Close = $4,297.14 Aug 13, 2021 Close = $4,468.00 1-yr Return = +3.3% 2-yr Return = -0.7% ...and using the latest CPI-U data[2] over roughly the same period: Jul 2023 Index = 305.691 Jul 2022 Index = 296.276 Jul 2021 Index = 273.003 1-yr Inflation = +3.2% 2-yr Inflation = +12.0% ...I get real returns of +0.1% and -12.7% over 1- and 2-yr periods, respectively. Same exercise looking at Vanguard VTI ETF[3]: Aug 15, 2023 Close = $220.37 Aug 15, 2022 Close = $215.78 Aug 13, 2021 Close = $230.05 1-yr Return = +2.1% 2-yr Return = -4.2% ...I get real returns of -1.1% and -16.2% over 1- and 2-yr periods, respectively. [1] https://fred.stlouisfed.org/series/SP500 https://fred.stlouisfed.org/series/SP500 [2] https://fred.stlouisfed.org/series/CPIAUCNS https://fred.stlouisfed.org/series/CPIAUCNS [3] https://advisors.vanguard.com/investments/products/vti/vanguard-total-stock-market-etf https://advisors.vanguard.com/investments/products/vti/vangu...