The Mustachian Forum
Welcome,
Guest
. Please
login
or
register
.
Did you miss your
activation email
?
1 Hour
1 Day
1 Week
1 Month
Forever
Login with username, password and session length
News:
Home
Help
Search
Login
Register
The Money Mustache Community
»
Learning, Sharing, and Teaching
»
Investor Alley
»
Worst 5 year period on record for stocks?
« previous
next »
Print
Pages:
1
Author
Topic: Worst 5 year period on record for stocks? (Read 3127 times)
Dodge
Pencil Stache
Posts: 790
Worst 5 year period on record for stocks?
«
on:
August 09, 2014, 11:42:53 AM »
The MMM article here:
http://www.mrmoneymustache.com/2011/06/06/dude-wheres-my-7-investment-return/
References a "stock market book I happen to be reading right now", that lists the following for the 5 year time period:
5-year periods: Worst: -2.35% Best: +28.55%
However, when simulating all 5 year time periods at
www.cfiresim.com
, I see the lowest 5 year point brought a $1,000,000 portfolio, with 0 spending, down to $669,673. This is about -8% annually. There are a few time periods in the 70's that got down into that range as well.
Why the big difference?
Logged
bacchi
Walrus Stache
Posts: 7100
Re: Worst 5 year period on record for stocks?
«
Reply #1 on:
August 09, 2014, 06:50:39 PM »
Inflation?
https://en.wikipedia.org/wiki/Stagflation
Logged
Dances With Fire
Stubble
Posts: 223
Re: Worst 5 year period on record for stocks?
«
Reply #2 on:
August 10, 2014, 05:47:25 AM »
Reinvested Dividends.
During the 1970's and 1980's yields were HUGE compared to today.
Logged
Dodge
Pencil Stache
Posts: 790
Re: Worst 5 year period on record for stocks?
«
Reply #3 on:
August 10, 2014, 01:33:57 PM »
Quote from: bacchi on August 09, 2014, 06:50:39 PM
Inflation?
https://en.wikipedia.org/wiki/Stagflation
That was it! Something should've clicked when I mentioned the 70's :-P
Logged
arebelspy
Administrator
Senior Mustachian
Posts: 28444
Age: -997
Location: Seattle, WA
Re: Worst 5 year period on record for stocks?
«
Reply #4 on:
August 30, 2014, 10:51:53 PM »
We need a symbol that means "real" and one that means "nominal" and it should become standard practice to use them, just as it is standard practice to differentiate between Euros and Pounds with symbols.
Make it so.
Logged
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me,
this Business Insider profile
tells the story pretty well.
I (rarely) blog at
AdventuringAlong.com
. Check out the
Now page
to see what I'm up to currently.
Print
Pages:
1
« previous
next »
The Money Mustache Community
»
Learning, Sharing, and Teaching
»
Investor Alley
»
Worst 5 year period on record for stocks?