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Adjusted S&P500 Price ==> Highest APY CDs with FDIC
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S&P500
Inflation Adjusted Price Inflation-adjusted S&P 500 price since 1900 |
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Over the
last 110 years, since 1900, the average annual "price return"
of the S&P500 adjusted for inflation is 1.7%. According to
page 5 of the July 2010 issue of "The Retirement Advisor"
you can get 20-year TIPS (Treasury-Inflation
Protected Securities) that yield the rate of inflation plus
1.75%. Of course, the S&P500 currently pays a 2.0% dividend
so that extra 1.95% return for stocks comes at a cost of higher
volatility and no government guarantee of getting your principal back.
On July 23, 2010 Chartoftheday.com wrote: "For some long-term stock
market perspective, today's chart illustrates the inflation-adjusted
S&P 500 since 1900. It is of interest that, when adjusted for
inflation, massive bear markets similar in magnitude to what occurred
in the early stages of the Great Depression (i.e. early 1930s) are
actually not all that uncommon. For example, the secular bear markets
that concluded in the early 1920s and early 1980s were of similar
magnitude. It is also of interest that the inflation-adjusted S&P
500 is up 550% since 1900. This equates to an average annual return of
1.7%. Currently, with the S&P 500 trading 41% off its
inflation-adjusted year 2000 peak, the S&P 500 trades very much
near the center of its century-plus upward sloping trend channel."
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| Source: Chart of the Day
Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com. |
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