UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: tjscott0 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Retirement Port Behavior 2000-2010 Date: 12/31/2010 10:54 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Let's hope we don't have a period of stagflation like in the 1970's.

Let's take a look at a 15 year slice of US data from January 1969 to January 1984.

S&P 500 true CAGR return=.-83%*
$1.00 grew to .89*
total inflation= 186.24%**

The stock market traded sideway & the dollar was worth only 35 cent in 1969 value.***

Price of gold 1969=$41.28****
Price of gold 1984=$424.00****
price of gold taking inflation into account $424x.35=$148.40
a 359% return

Price of silver 1969=$1.81*****
Price of silver 1984=$9.12*****
price of silver taking inflation into account $9.12x.35=$3.19
a 176% return

In that period of time one would be better off holding gold &/or silver.
The future? Beats me.

Ladies & gentlemen, Place yer bets.

*http://www.moneychimp.com/features/market_cagr.htm
**http://www.inflationdata.com/inflation/Inflation_Calculators...
***http://www.dollartimes.com/calculators/inflation.htm
****http://www.nma.org/pdf/gold/his_gold_prices.pdf
*****http://goldmastersusa.com/silver_historical_prices.asp
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement