Author Topic: Worst 5 year period on record for stocks?  (Read 3125 times)

Dodge

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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?

bacchi

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Re: Worst 5 year period on record for stocks?
« Reply #1 on: August 09, 2014, 06:50:39 PM »

Dances With Fire

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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.

Dodge

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Re: Worst 5 year period on record for stocks?
« Reply #3 on: August 10, 2014, 01:33:57 PM »
Inflation? https://en.wikipedia.org/wiki/Stagflation

That was it!  Something should've clicked when I mentioned the 70's :-P

arebelspy

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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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