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Chart Of The Day

The Long View on Stocks

Here’s an interesting chart and some stats frmo Merrill Lynch on long run stock market performance.  Now, if we could only solve that whole, not being alive for 189 years, problem…..

  • In the long-run stock prices rise.
  • ƒ $1 invested in US large company stocks in 1824 would be worth roughly $427 today in nominal terms.
  • An even better stat for the bulls: $1 invested in US large company stocks in 1824 would be worth close to $4,225,000 with dividends reinvested, illustrating the power of compounding.
  • The great equity bull markets -ƒ 1860-1872 = 332% total return; –  1920-1928 = 423% total return; ƒ and (the greatest of them all) 1982-1999 = 1654% total return
  • From the March 2009 lows to their all-time high on August 2nd 2013, US large cap stocks have returned 177%.

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