S&P 500

Growth of GDP per Capita vs Stock Prices since 1871

by Catherine Mulbrandon

in Bubbles, History of the United States, VE Infographics

Comparing Real GDP per Capita growth to the real growth in S&P Composite (price only). However, the stock price series is adjusted for inflation using CPI-U while the GDP per Capita (from MesuringWorth.com) is adjusted with the GDP Deflator.

Annualized growth rate of since 1871:
Real GDP per Capita = 2.0%
Real stock price return = 1.9%
compared to
Real total return with dividends reinvested = 6.2%

Data from MeasuringWorth.com and IrrationalExuberance.com

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Effect of Dividends Reinvested on US Stock Returns since 1871

by Catherine Mulbrandon

in Bubbles, History of the United States, VE Infographics

Another version of my stock graph. Instead of the nominal price index from yesterday’s post, I am comparing real price index to the real total return (price change with dividends reinvested) since 1871. Both series are adjusted for inflation.

Annualized growth rate of since 1871:
Real total return with dividends reinvested = 6.2%
Real stock price return = 1.9%

You can find data at IrrationalExuberance.com & MeasuringWorth.com

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Effect of Inflation on S&P Price Return (1871-2010)

by Catherine Mulbrandon

in Bubbles, History of the United States, VE Infographics

I modified my original US stock prices graph to compare the growth rate of real growth (adjusted for inflation) in S&P Composite Index with the nominal price growth.

Annualized growth rate of since 1871:
Nominal stock price return= 4.0%
Real stock price return = 1.9%

You can find data at IrrationalExuberance.com

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US stock growth during “Roaring 20s” similar growth in 1990s

by Catherine Mulbrandon

in Bubbles, History of the United States, Other

Another stock graph similar to Exponential Growth Rate of US Stocks since 1871 except this one is plotted on a semi-log scale to help illustrate the price movement of S&P Composite Index. For example, the percent change in the index’s value during the 1990s “Internet Stock Bubble” (a little over 250%) was similar to the price change during the 10-years preceding the 1929 Stock Market Crash.