- Articles - 2013 Blog - Real Price of S&P Composite with Dividends Re-invested 1870-2012
                Windsurfing at Palo Alto in SF Bay in May 2009
 Real Price of S&P Comp - 1870-2012
Historical Data with Dividends Reinvested from 1870 to 2012
                Windsurfing at Coyote Point November 2009
Newsletter Subscribe   Favorite Charts & Graphs  - More Articles - Blog

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.
  • 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

Click for FREE sample of Kirk Lindstrom's
                    Investment Letter

TOP of Page

Home of "CORE & Explore®" investing.

FREE=> Investment Letter SAMPLE  <== FREE

Disclaimer:  The information contained in this web site is not intended to constitute financial advice, and is not a recommendation or solicitation to buy, sell or hold any security. This blog is strictly informational and educational and is not to be construed as any kind of financial advice, investment advice or legal advice. Copyright © 2011 Kirk Lindstrom. Note: "CORE & Explore®" was coined by and is a registered trademark of Charles Schwab & Co., Inc.