See how a dollar would have grown over the past 94 years [pdf]
newyorklifeinvestments.com
See how a dollar would have grown over the past 94 years [pdf]
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Re: See how a dollar would have grown over the past 94 years [pdf]
#2The small cap edge is surprising.
Re: See how a dollar would have grown over the past 94 years [pdf]
#3The small cap edge is surprising.
And it's not obvious thanks to the logarithmic scale... There must have been a better way to present this information.
Re: See how a dollar would have grown over the past 94 years [pdf]
#4The small cap edge is surprising.
Looks like that was a one-time event in the 70s. The rest of the time, the small stocks line goes roughly parallel to the large stocks line.
Re: See how a dollar would have grown over the past 94 years [pdf]
#5The Y axis scaling is so misleading.
Re: See how a dollar would have grown over the past 94 years [pdf]
#6If we're allowed to cherry pick years, now do gold
Re: See how a dollar would have grown over the past 94 years [pdf]
#7When I was born in 1990 my grandparents spent like 5k on government bonds that my dad didn't tell me about until I was 30.
It was a very nice treat, but when I did the math to see how much more it would have been if just invested in the market I gasped.
Re: See how a dollar would have grown over the past 94 years [pdf]
#8now do purchasing power of the dollar
Re: See how a dollar would have grown over the past 94 years [pdf]
#9now do purchasing power of the dollar https://fred.stlouisfed.org/series/CUUR0000SA0R
It was relatively stable if you could go back to the century before that graph starts, when there was no federal reserve.
Re: See how a dollar would have grown over the past 94 years [pdf]
#10Rule of 72: time for an investment to double is roughly 72 / the interest rate [0].
Annual return on small-cap stocks: ~12%
Time to double: 72/12 ~= 6 years
Number of doubling periods: 99/6 ~= 16
Final investment value: ~2**16 ~= $65k ~= $64,417