Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that $10,000 invested in the S&P 500 at the start of 1950, with all dividends reinvested, would grow to approximately $3,836,763 by the end of 2025. Gold provided pure price appreciation (no yield or dividends). The multiplier is about 124.7× ($4,360 ÷ $35), or an…
And to be extra fair, we might want to subtract tax from those dividends before reinvestment.
S&P500 Priced in Gold
11–20 of 55 posts
Re: S&P500 Priced in Gold
#12Re: S&P500 Priced in Gold
#13Re: S&P500 Priced in Gold
#14Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that $10,000 invested in the S&P 500 at the start of 1950, with all dividends reinvested, would grow to approximately $3,836,763 by the end of 2025. Gold provided pure price appreciation (no yield or dividends). The multiplier is about 124.7× ($4,360 ÷ $35), or an…
Re: S&P500 Priced in Gold
#15Re: S&P500 Priced in Gold
#16Economic stagnation for over a decade? Aligns with the vibes, IMO.
Gold is just one of many commodities these days, mostly unconnected from most monetary systems for many decades. Treating it as the benchmark of value is really quite arbitrary, and I expect someone could compare the S&P to other random commodities and come up with completely different conclusions...
Re: S&P500 Priced in Gold
#17Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that $10,000 invested in the S&P 500 at the start of 1950, with all dividends reinvested, would grow to approximately $3,836,763 by the end of 2025. Gold provided pure price appreciation (no yield or dividends). The multiplier is about 124.7× ($4,360 ÷ $35), or an…
Re: S&P500 Priced in Gold
#18Re: S&P500 Priced in Gold
#19Totally misleading, S&P with dividends reinvested blows away gold since 1950 or 1971. S&P 500 Investment (with Dividends Reinvested) Historical data shows that $10,000 invested in the S&P 500 at the start of 1950, with all dividends reinvested, would grow to approximately $3,836,763 by the end of 2025. Gold provided pure price appreciation (no yield or dividends). The multiplier is about 124.7× ($4,360 ÷ $35), or an…
Great! We can start trading with each other in stock notes. I can't wait to buy my next round of groceries with a 0.1 SPY note! The ones I don't use will pay dividends!
Re: S&P500 Priced in Gold
#20What is the point of this chart? It would make more sense to price in terms of hamburgers or any other reasonably consistent item of real consistent value/utility.