Author Topic: Stock Market Matrix - Annualized Performance Chart  (Read 1592 times)

PEIslander

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Stock Market Matrix - Annualized Performance Chart
« on: March 23, 2015, 04:09:35 AM »
You may have seen a version of the attached pdf matrix chart before. [Download link is at bottom of posting]. Versions were published in the Wall Street Journal and Wired magazine. This one was created by Crestmont Research (http://www.crestmontresearch.com/) and its posting here falls within Crestmont's acceptable use guidelines. Crestmont Research has this and other versions on their site as well as numerous other visualisations of economic & financial data/analysis.

The attached version (pdf format) includes 2014 in its data and it illustrates inflation-adjusted, dividend-reinvested, transaction-cost-included, real returns relative to the S&P 500 for tax-exempt or tax-deferred investments. There is additional info about the assumptions & data at the Crestmont Research site.

Here's the key to reading the matrix:


As an example of how the matrix can be used I can check the annualized performance returns of the first investment I made in 1990 in a tax-deferred account. I find 1990 on the left axis and then look horizontally over to the 2014 column. I see the value "6". It tells me that between 1990 & 2014 my inflation-adjusted, dividend-reinvested, annualized rate of return was 6%.

I hope others find the matrix as interesting as I have.
« Last Edit: March 23, 2015, 04:29:00 AM by PEIslander »