The Real Total Return of the S&P 500

Here’s a look at the real total return of the S&P 500, meaning adjusting for inflation and dividends:

We’re up a lot, but we still have a long way to go. Those are monthly numbers so it only goes through the end of 2007. It doesn’t reflect our little swoon at the beginning of the year.
The long-term real rate return for commons stocks has been about 7% (notice I said “long-term”). Over the last twelve years, stocks have returned an average of 6.92% a year.

Posted by Eddy Elfenbein on January 16th, 2008 at 10:32 am

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