Join Early Retirement Today
Thread Tools Search this Thread Display Modes
A Standard, and Poor, Way of Investing.
Old 01-21-2012, 05:32 PM   #1
Recycles dryer sheets
Join Date: Sep 2007
Posts: 449
A Standard, and Poor, Way of Investing.

Today's WSJ column "Heard On The Street", for those that have followed the S&P closely.

Not sure if this is true.

Disappointed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-21-2012, 05:38 PM   #2
Recycles dryer sheets
Packman's Avatar
Join Date: Jan 2011
Location: Phoenix
Posts: 303
It appears that you need to subscribe to the online WSJ to read this article. Perhaps you would like to expand for those of us that are not subscribers.

Retired on 5/31/2011 at 54
Packman is offline   Reply With Quote
Old 01-21-2012, 06:52 PM   #3
Moderator Emeritus
Nords's Avatar
Join Date: Dec 2002
Location: Oahu
Posts: 26,639
Originally Posted by Packman View Post
It appears that you need to subscribe to the online WSJ to read this article. Perhaps you would like to expand for those of us that are not subscribers.
You don't always need to be a subscriber. Here's the super-secret backdoor into the WSJ:
1. Click on the link, and see that the rest of the article is behind the subscriber wall.
2. Highlight the title ("A Standard, and Poor, Way of Investing"), copy.
3. Go to and paste the entire title into the search box. Quotes are not necessary.
4. The first link that comes up will be the entire article without the subscriber wall.

Even with a gain of 4% since the start of the year, the Standard & Poor's 500-stock index has, with dividends reinvested, lost 8% since reaching its peak in October 2007. Adjust the index for inflation, and the news is worse—it has lost 18% since August 2000. Anybody who put money into an S&P 500 index fund between late 1998 and early 2001 remains in the red.
When was the last time that so much time elapsed and the U.S. stock market still remained below its inflation-adjusted peak? Never, according to the monthly price and return data from Yale University economist Robert Shiller's reconstruction of the S&P 500 back to 1871. Even investors who bought on the eve of the 1929 crash were briefly above water, in inflation-adjusted terms, in 1937. Of course, since this owes to the deflation experienced during the Great Depression, strictly speaking the mattress was still a better place to put your money.
But while the stock market has been faring poorly, stocks have been doing better. The equal-weighted S&P 500 index, which puts all stocks on the same footing rather than weighting them by market capitalization, has beaten the regular index hands down. Since August 2000, it has returned an inflation-adjusted 52%.
But again, I'm not sure what we're supposed to do with this information. (Other than applaud the author for making their deadline.) I don't know anybody who invests ONLY in the S&P500. It's like complaining about the Nikkei or the Pakistani cattle-futures index.

The book written on, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 01-21-2012, 07:03 PM   #4
Full time employment: Posting here.
tightasadrum's Avatar
Join Date: Aug 2006
Location: athens
Posts: 802
Ryder equal weighted EFT -symbol RSP

That's where I put my market index money. Be aware though , it has a lot more movement than S&P.
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 01-22-2012, 06:55 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,307
RSP looks good. The S&P doesn't look as bad as I thought it would.

The data for RSP started May 2, 2003. Using the adjusted close in Yahoo's historical prices for it, it appears to have given abut a 9.2% total annual return over that time span.

Over the same period, VFINX gave a total return of about 5.8%. If I am interpreting the "adjusted close" properly, that is not really awful. They were both volatile and RSP was more volatile.

Am I reading this right?
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 01-22-2012, 08:42 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 9,030
According to a growth-of chart, if one invested in Vanguard's VFINX on 8/31/1998 and held to today in a tax-advantaged account and reinvested all dividends, one would have about 75% more money than they started with.

That is certainly not "remains in the red". Doesn't anybody do any fact checking anymore?

If one invested on 3/31/2000 (a near high in the time frame mentioned), then one would be up about 8%.

LOL! is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 04:17 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.