3 ms·
3%. Still higher than inflation protected bonds.
by tekla 3y ago
3%. 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...