Showing posts with label VFIAX. Show all posts
Showing posts with label VFIAX. Show all posts

Tuesday, January 23, 2024

As stock indexes make new all time highs, it's still a 7% world, not a 16% world

The current $SPX world, from Aug 2000 (market peak) to Dec 2023, dividends reinvested, average per annum return: 7.019% nominal.

The previous world of similar length, Apr 1977 to Aug 2000: 16.246% nominal.

Remember that no one even dates the bull market conditions of the past starting from 1977. The Reagan bull began in the summer of 1982. But even from 1977, it was a completely different, better world for investors.

The rate of nominal return per annum was 2.31 times better in that world.

Investing $100 per month in the previous world produced over $258k. Investing $100 per month in the current world has produced only $103k.

The following Vanguard mutual funds have inception dates in the year 2000. They reflect the same reality.

I show nominal average annual return since inception for each fund in 2000 through 12/31/23, per Vanguard.

Performance in red beats average SPX nominal 7.019% since 2000, but none by much. Remember that through 12/31/23 stocks generally were only recently buoyed by exceptional returns, after a down year last year. $VTSAX, the total stock market index, was up a whopping 26.01% in 2023.

VIGAX 8.21 Growth Index
VFIAX 7.62  500 Index
VTSAX 7.90  Total Stock Market Index
VEXAX 8.22  Extended Market Index
VSGIX 8.93  Small Cap Growth Index Inst.
VESIX 4.47  European Stock Index Inst.
VSMAX 9.01 Small Cap Index
VBAIX 6.70  Balanced Index Inst.
VBIAX 6.57 Balanced Index
VPKIX 3.40  Pacific Stock Index Inst.
VVIAX 7.18 Value Index
VEMIX 6.37 Emerging Markets Stock Index Inst.
VIPSX 4.49  Inflation Protected Securities
 
These are but a shadow of the former things which obtained in the previous world.

Thursday, January 11, 2024

So that's why we can't afford it

 Wealthiest 10% own 93% of stock market...

The market capitalization of the S&P 500 on Dec 29, 2023 was about $42 trillion, each point of the index worth about $8.80535 billion.

8.80535 billion x 4,769.83 SPX 12/29/23  = 42,000 billion. 

One share of VFIAX on 12/29 cost $439.99. 

Price on 3/9/2009 was $62.66.