[OC] Nominal vs Real Values of the Dow Jones Industrial Average Since 1906

    by turbobureaucrat

    11 Comments

    1. That really puts it into perspective.

      It’s only a pathetic increase to 1200% of the starting value.

    2. Is this saying the DJIA increased in value by a factor of 12 over the last 113 years, and everything else is just inflation?

    3. It’s well known that, adjusted for inflation and over the long term (120 years), the S&P 500 has gone up about 6-7% a year. That a very good return — better than you’d get if you’d invested that same money in, say, a house (in the US, anyway). It’s also much more than you’ve got here. Does this chart include, for example, dividend re-investment?

    4. I wouldn’t mind seeing this with the value being log scale. This might also allow the viewer to see dips in the index (such as the Great Depression, Great Recession, WWI and II, and later Junk Bonds, Housing Crash, etc), rather than what appears to be a mildly upwards trend up until the 70’s. Because of the low end data washing of the nominal worth value line, anything historically interesting is gone, and the only this that can really be learned from this is that inflation seems to be a driving force behind today’s nominal DJIA current heights (at all points of the rising index). Also, I’m not getting paid enough.

    5. Does this include dividends? I assume you’re using the Dow as it’s been around a long time. It’s an odd index though.

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