Author Topic: Dow crosses 10,000 first time in March 1999  (Read 1855 times)

FrugalSaver

  • Pencil Stache
  • ****
  • Posts: 832
Dow crosses 10,000 first time in March 1999
« on: September 22, 2019, 01:39:40 PM »
It eventually peaked at 11,750ish in the dot com bust

At just 9% returns from March 1999 to today, it would be over 60,000 and yet we stand at just barely 27,000 after skyrocketing after the Trump Election

Interesting long term context

lost_in_the_endless_aisle

  • Guest
Re: Dow crosses 10,000 first time in March 1999
« Reply #1 on: September 22, 2019, 02:24:22 PM »

MDM

  • Senior Mustachian
  • ********
  • Posts: 11490
Re: Dow crosses 10,000 first time in March 1999
« Reply #2 on: September 22, 2019, 03:34:48 PM »
Don't forget dividends
https://dqydj.com/dow-jones-return-calculator/
+1

"Forgetting" to include index fund dividend reinvestment is a typical trick of annuity salespeople when comparing their products to various index funds.

jeroly

  • Pencil Stache
  • ****
  • Posts: 616
Re: Dow crosses 10,000 first time in March 1999
« Reply #3 on: September 22, 2019, 03:44:32 PM »
It eventually peaked at 11,750ish in the dot com bust

At just 9% returns from March 1999 to today, it would be over 60,000 and yet we stand at just barely 27,000 after skyrocketing after the Trump Election

Interesting long term context
... and your point is?

Personally, if someone told me that we would have the two biggest stock market crashes since the Great Depression, and within twenty one years the market would still have more than doubled without even counting dividends, I'd have taken it in a heartbeat!
« Last Edit: September 22, 2019, 03:46:06 PM by jeroly »

FrugalSaver

  • Pencil Stache
  • ****
  • Posts: 832
Re: Dow crosses 10,000 first time in March 1999
« Reply #4 on: September 22, 2019, 09:05:31 PM »
Well the 9% was including dividends

People typically use 10% (including divIdends) which would have the number even higher

matchewed

  • Magnum Stache
  • ******
  • Posts: 4422
  • Location: CT
Re: Dow crosses 10,000 first time in March 1999
« Reply #5 on: September 23, 2019, 06:08:33 AM »
Well the 9% was including dividends

People typically use 10% (including divIdends) which would have the number even higher

So bad math is bad then?

If you were considering dividends in price appreciation then the 60000 price you mentioned is less an interesting point and more a red herring. Ya?

And are you adjusting for inflation?



i_have_so_much_to_learn

  • Stubble
  • **
  • Posts: 196
  • Location: SF Bay, CA, USA
  • started a chatroom: https://discord.gg/agSSAhXzYD
Re: Dow crosses 10,000 first time in March 1999
« Reply #8 on: September 28, 2019, 01:10:21 AM »
i misread - i thought it meant 9% overall growth since 1999. It meant 9% YoY, right?

MDM

  • Senior Mustachian
  • ********
  • Posts: 11490
Re: Dow crosses 10,000 first time in March 1999
« Reply #9 on: September 28, 2019, 01:27:12 AM »

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: Dow crosses 10,000 first time in March 1999
« Reply #10 on: September 28, 2019, 11:55:57 AM »
Why would I care about some stock picker's small collection of 30 stocks? "The Dow" is vastly overblown.

What's VTI done in that timeframe? Include dividend reinvestment.