Picking a time-frame matters when comparing investment returns! Today, I just wish to show that stocks LATELY (since January 2012) have been performing better than gold.
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I have focused my blog very much over the years on gold and alternative investments, but it is important to note that stocks (both the S&P 500 and Dow Jones Industrial indices) have both reached five-years highs. Both of these indices have approximately doubled since the stock market lows of March 2009 (the lows during the market panic of 2008 - 2009).
The S&P 500 is an index made by Standard & Poors, it is composed of 500 "large companies". More information on the S&P Index can be found here: http://en.wikipedia.org/wiki/S%26P_500
Here is a chart from Google Finance / Yahoo Finance / MSN Money of the S&P 500 over the past five years (the large numbers at the top of the chart show the S&P 500's gain today as of 3:21 PM):
Now note that even with the gains since 2009 that the S&P 500 has performed POORLY since 2000 (note that the S&P moved up a little more by 3:29 PM today):
Roughly speaking, the S&P 500 has gone nowhere since the year 2000. This performance does NOT include inflation (of course), so anyone who held a substantial amount of money in the S&P 500 has done very poorly for 12 years!
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Taking a longer view of gold, here is a chart of the price of gold over the last 10 years, compare THIS chart with the movement of the S&P 500 from 2000 - 2013 in the chart just above:
Source: www.kitco.com
And compare this chart of gold over the past five years (note that since the stock market low in March 2009 that the S&P 500 and gold have both approximately doubled, compare the below chart with the first chart of this article):
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So, looking at different periods matters! Lately stocks have been on a tear vs. gold! Let's summarize, all numbers approximate:
S&P 500
|
Gold
|
|
1 Year Change
|
14%
|
0%
|
5 Year Change
|
100%
|
82%
|
10 Year Change
|
66%
|
450%
|
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