If you had invested $10,000 in a portfolio made up of Dow stocks in 1999, you’d be in pretty good shape today, right? Well as compared to investing with Bernie Madoff or Allen Stanford, sure. But what if you compared the Dow with, say, burying your money in a box in your backyard? The box strategy wins!
The chart below is from an article in the Wall Street Journal which shows what has happened to the Dow over the years. The Dow is essentially in the same place it was 10 years ago. And that is before you adjust for inflation.
If you adjust for inflation, the Dow really sits at around 8200 and would have to rise 28% to reach 1999 levels. That means the Dow would have to be at approximately 13,460 to get back to its inflation adjusted 1999 level. The entire Wall Street Journal article is here.
You would have been better off buying Star Trek Trading cards in the 90’s. Sorry you missed that one.