S&P 500 Index confusion

[SwordGuy]

Well, our net worth still goes up or down about $10,000 per point change in the S&P 500 index.

It used to do that when the index was around 2300 and now it's around 4350.   Seems like it would be more now...

I'm kind of confused a bit.

[bacchi]

Isn't it connected to how many shares you have?

The percentage has changed but the actual dollar value is the same.

[SwordGuy]

Isn't it connected to how many shares you have?

The percentage has changed but the actual dollar value is the same.

If the price of my shares goes up 100%, my share value goes up 100%, too.

If I have 100 shares at $200, they are worth $20,000.   If $400 per share, $40,000.

A 10% increase in share value would be $2,000 and $4,000 respectively.

I thought that the S&P Index was correlated to share price, so that general pattern should hold.    If it's not a perfect correlation, then there would be some variation.

I looked up the formula and it seems like there should be some correlation, but my rough and ready observations don't seem to match that understanding ...

https://en.wikipedia.org/wiki/S&P_500

[Morning Glory]

Dividends?

If your quarterly dividend hits during a month with a drop it might even out your net worth fluctuations.

[SwordGuy]

Dividends?

If your quarterly dividend hits during a month with a drop it might even out your net worth fluctuations.

Maybe, but it's been pretty consistent for years.

Ok, I just went back and looked at my stock holdings for 4 years ago and today and they're only about 20% higher, so I guess that's it.

Never mind.    I had a stupid moment...   I think I will go to bed...

[vand]

If you are fully invested in the S&P when the index price is 2000 then the index goes up to 4000, you have twice as much invested even though a single point change, ie 4000 to 4001  is now only half as large in percentage terms as previously, ie 2000 to 2001, so in dollar terms its the same amount.

[SwordGuy]

If you are fully invested in the S&P when the index price is 2000 then the index goes up to 4000, you have twice as much invested even though a single point change, ie 4000 to 4001  is now only half as large in percentage terms as previously, ie 2000 to 2001, so in dollar terms its the same amount.

I wasn't that dumb. :)   I was comparing % change. :)

[MustacheAndaHalf]

Well, our net worth still goes up or down about $10,000 per point change in the S&P 500 index.

It used to do that when the index was around 2300 and now it's around 4350.   Seems like it would be more now...

I'm kind of confused a bit.

I believe the index and SPY ETF have a 10:1 relationship.  So that 2300 level only lasted a few months in 2017.  Why set expectations based on a few months from a specific year?