The “total return” for the broad stock market (S&P 500 Index) has declined by 30% in real terms since the March, 2000 peak

If you feel poorer despite continuing to add to your stock market savings, there’s good reason for that. Below is the chart. Note that the “red line” is the one you want. It’s inflation-adjusted and accounts for dividends (not fees or taxes).

Since the stock market peak on March 24, 2000 the line has gone from 1000 to 702 — a 30% reduction. Measuring instead from the pre-crash peak of late 2007, real total returns have gone down about 26%.

Click on the chart to enbiggen.
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About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
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One Response to The “total return” for the broad stock market (S&P 500 Index) has declined by 30% in real terms since the March, 2000 peak

  1. hortonw says:

    It’s not shocking that investing at the peaks leaves you with a lousy return — though a negative return for 11 years is rough. What’s more striking is that investing at the market bottom in 2003 still leaves you with only a modestly positive real return. There is good reason to worry that the old principles of investing may no longer hold true in the US.

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