KirkLindstrom.com - Articles - 2013 Blog - Real Price of S&P Composite with Dividends Re-invested 1870-2012
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 Real Price of S&P Comp - 1870-2012
Historical Data with Dividends Reinvested from 1870 to 2012
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                Windsurfing at Coyote Point November 2009
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February 11, 2013: Below is a graph showing the real (inflation adjusted) return of the S&P composite with dividends re-invested on a log scale from 1870 to 2012.  Key features:
  1. The middle line is a best fit of the data with correlation R=0.992
  2. Real Price means price is adjusted for inflation.
  3. The S&P Composite 1500 (definition) combines three indexes: the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization. 
  4. Obviously, the creator of the graph sprinkled some "interpretation" into estimating the market cap of the composite before it came into existence.  My guess is he calculated the total market cap for all stocks and took 90% of it to make the graph.
 
Note:                                                          
  • Period of "Irrational Exuberance" between 1997 and 2001.  I was one of the few people in the Silicon Valley that said to "take profits in technology stocks' in 1999 and 2000.  Note how the value of ALL my newsletter portfolios are significantly higher now than the peak of 2000 despite the heavy weighting in NASDAQ stocks



Note 1.  Source:  Silicon Investor

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