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Worst 5 year period on record for stocks?
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Topic: Worst 5 year period on record for stocks? (Read 2554 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?
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bacchi
Magnum Stache
Posts: 4078
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
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Dances With Fire
Stubble
Posts: 218
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.
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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
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arebelspy
Administrator
Senior Mustachian
Posts: 28127
Age: -999
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.
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We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures,
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We (rarely) blog at
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Worst 5 year period on record for stocks?