Author Topic: How Much is the Market Really Down  (Read 787 times)

treefly

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How Much is the Market Really Down
« on: September 06, 2022, 12:14:26 PM »
Hello all, I am trying to figure out how far down % I should consider the market... I see on marketwatch that the SP500 is down about 18% YTD, but does that include inflation? If I am including inflation, how far down is the market? Could someone link to a site that tracks that?

ChpBstrd

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Re: How Much is the Market Really Down
« Reply #1 on: September 06, 2022, 02:03:08 PM »
Sounds like you want an estimate of the amount of purchasing power lost if one invested in the S&P500 YTD. To get this amount you'll need to take a "total return" index that includes dividend reinvestment like this:

https://finance.yahoo.com/quote/%5ESP500TR

It is at -17.2% YTD as of now.

Then you'll need to adjust for YTD inflation by subtracting the percentage amount of change in CPI YTD. The December 2021 CPI index value was 280.126, and July 2022 CPI was 295.271. That's an increase of 5.4% YTD - though that number is subject to increase when the August CPI is published next week. You could avoid omitting August by entering a guess for August CPI if you'd like - another 0.7% sounds in the ballpark to me.

But we can say that as of the end of August, an investment in the S&P500 lost (-17.2% - 5.4% =) 23.6% in purchasing power YTD.

 

 

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