Stock Returns Washed Away
Brad DeLong does the terrible math:
"Average real capital gain over the twelve years since Greenspan's "irrational exuberance" speech in December 1996: -2.1% per year.
Average dividend paid on the S&P composite over the twelve years since Greenspan's "irrational exuberance" speech in December 1996: 1.6% per year.
Real return on the S&P composite over the twelve years since Greenspan's "irrational exuberance" speech in December 1996: -0.5% per year."
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Reader Comments
Retired and crying
I did it all according to the best advice. I saved 10% of earnings each year. I bought and held my holdings like we were told to, I gave up many luxuries and trips in the last 35 years so that I could save for a solid retirement. I never bought more than I could afford. I achieved my retirement dollar goal, and I have never spent ANY of the principle.
Now I have to look for a job when thousands are being laid off every day. So much for listening to the "experts", and good luck to me in finding a job now at age 65.
A guy who steals a bag of chips from a convience store gets 10-20 in prison. It looks like the guys who ruined the hopes and lives of a whole generation are still getting their big bonuses. Where is the justice in that logic?
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