Apart from a catchy rhyme - the S&P500 has not bested its peak level, when using the SPY, or the investible index of the S&P500.
That's quite a non-return over 15 years. Zero return despite two massive losing streaks of 48% and 53% (using only monthly closes in the calculation). Granted, this doesn't include dividends paid out on SPY, which has been roughly 1.X% a year. And, of course, I don't think there is a person in America who believes that the CPI is calculated correctly at all. We can thank our US Gov't for having a conflict of interest in calculating the CPI to keep the payments to social security as low as possible with the "Cost of Living Adjustments" negatively hurt by low CPI figures.
Either way, we can thank the internet for keeping inflation at bay and promoting global competition and rapid advancements in productivity for keeping inflation down too.
I was sharing this chart with my family and thought you would enjoy seeing it too.
All the best,
Tim
Saturday, 3:01PM EST 9/19/2015
That's quite a non-return over 15 years. Zero return despite two massive losing streaks of 48% and 53% (using only monthly closes in the calculation). Granted, this doesn't include dividends paid out on SPY, which has been roughly 1.X% a year. And, of course, I don't think there is a person in America who believes that the CPI is calculated correctly at all. We can thank our US Gov't for having a conflict of interest in calculating the CPI to keep the payments to social security as low as possible with the "Cost of Living Adjustments" negatively hurt by low CPI figures.
Either way, we can thank the internet for keeping inflation at bay and promoting global competition and rapid advancements in productivity for keeping inflation down too.
I was sharing this chart with my family and thought you would enjoy seeing it too.
All the best,
Tim
Saturday, 3:01PM EST 9/19/2015
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