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Can this be compared to the S&P 500?
by KaoruAoiShiho 2y ago
Can this be compared to the S&P 500?
- ta1243 2y agoNo, the S&P500 wasn't formed until 1957
- tempestn 2y agoYou could use the Dow though. It varied from 2700 to 2900 in 1950, and is now about 45,000, so about a 16x increase, while inflation over the same period has been about 30x. However the index price doesn't account for dividends, so total return has been much larger.
- Uvix 2y agoIt's tricky to say if the Dow is really a good measure across time like that. Exactly two of the companies on it were there in 1950; the other 28 were added in 1976 and beyond. It's not clear if the price weighting really accounts for that much of a shift in composition.