if my calculations are correct - the stock market has seen HUGE growth over the last 40 years - way above the rate of inflation of consumer prices
http://www.in2013dollars.com/1978-dollars-in-2018?amount=1000 - , $1,000 in 1978 is equivalent in purchasing power to $3,865.61 in 2018
Dow Jones Industrial Average - Dec 22 1978 - 808.47 - Dec 14 2018 - 24,100.00
S & P 500 - Dec 22 1978 - 96.31 - Dec 14 2018 - 2,599.00
it looks to me that consumer costs are up 4 times higher - but stock market values are 24 or 25 times higher (actually maybe 6 times higher)
Not sure if I am interpreting this correctly.
Maybe I have to say - if I bought $1000 of stock in 1978 I would have to use $4000 of 2018 dollars - but the worth of the stock (now in 2018) would be $24,000 in 2018 dollars - the 2018 value of my stock is up 6 times (4K to 24K)
Another way to look at it is - if I earned $1000 in 1978 and stuck it under my mattress - it would buy 4 times less stuff in 2018 - if I put the $1000 in 1978 dollars in the stock market in 1978 it would now be able to buy ? $24,00 worth of stuff
????? still confused
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