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To: expat_panama

an I assume that chart is “normalized” for inflation?


29 posted on 05/06/2016 9:43:15 AM PDT by mad_as_he$$
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To: mad_as_he$$
“normalized” for inflation?

You're right to be concerned w/ inflation w/ investment planning.

Down in the lower right hand corner of the numbers is a grey line labeled "cpi" --the consumer price index.

It shows that a one dollar purchase in 1800 of the standard market basket of the index would be worth about $16 in current dollars.

We get an idea of the last 40 years of returns by seeing how that time-frame shows a tripling of inflation, a 20-increase in the price of gold, and a 10,000% increase in sales price of a bunch of Dow Jones stocks + dividends.

Since the past four-decade returns has been fairly typical of what we've had over the past two centuries it's reasonable to  plan that the next 40 years can be much the same.

33 posted on 05/06/2016 11:38:14 AM PDT by expat_panama
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