The Late-’90s Rally Started 20 Years Ago Today

Twenty years ago today, the S&P 500 closed at 445.45. From there, the index started a five-year rally that saw it jump by more than 240%. Even after the two major crashes of the 2000s, the market has still given investors a nice return over the last 20 years.

Some people may quibble with my choice of December 8 because that wasn’t the low point of 1994. However, it was after December 8 that the market started on a nearly uninterrupted tear.

From December 9, 1994 to last Friday, the Wilshire 5000 Total Return Index is up 600.4%. That’s 10.2% annualized. Inflation over the last 20 years is up 59.1%, or 2.3% annualized.

Posted by on December 8th, 2014 at 3:20 pm


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