In times of doubt

Big picture:

Although not nice to buy in 1929, nearly a 20yr wait to break even! I hope we are not in a similar place right now :frowning:

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Whenever looking at performance chart, it should have two things factored in:

  • dividends reinvested (total return)
  • inflation adjusted

And it’s also nice if it’s logarithmic. Your chart is missing the dividends (or both?).

This site has the right chart:

http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm

If you think 1929 was awful, what do can you say about 1968-1984? It wouldn’t seem like such a bad period, but inflation was just terrible!

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Thanks. Do you have a preferred tool to check inflation rates?