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To: jpsb
This is interesting

$5.02 in the year 2003 has the same "purchase power" as $1 in the year 1969.

Dow in 1969 was 876.72; 876.72 X 5 = 4380. Dow today call it 10,000 so investors (on average) did a little better then doubling their money in the marget since 1969.

Gold in 1969 $35 Gold in 2004 is $400 now 35 X 5 = 175 almost exactly the same growth as the market!!!! Hmmmmm, something is fishy here.

270 posted on 11/27/2004 9:49:08 PM PST by jpsb
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To: jpsb
Two points:

1.) In 1969, the dollar value of gold was fixed by the government. It in no way reflected its actual market value. You therefore cannot use it as a legitimate reflection of real value.

2.) The profits gained by stocks are, on average, not reflected in the price. The compounded returns on dividends for the broad market are at least as large as the returns on price appreciation over the last 35 years. That is why the dividend tax cut was such a big deal to investors.

293 posted on 11/27/2004 11:49:30 PM PST by tortoise (All these moments lost in time, like tears in the rain.)
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