PLANNING & OTHER POSTS
An index to supplement the stock & bond market post index.
(Note: Some parts of this index are still under construction.)
SPREADSHEETS & CALCULATORS
TECHNOLOGY, SPORTS AND OTHER STUFF
ADDITIONAL SITE NAVIGATION AIDS
A personal finance blog that provides historical perspective, emphasizes strategic planning, and uses graphs & spreadsheets to show how financial things work.
Saturday, April 21, 2012
Sunday, April 15, 2012
Housing vs. Stock Market Growth Revisited
Devising a way to make a simple, fair, high-level comparison between housing and stock investments is more difficult that you might think. This post is my second attempt to develop such a comparison.
In both cases, we're using nominal, "then current," dollars -- i.e., I have not adjusted for inflation. In both
U.S. Housing vs. Stock Market Price Growth
U.S. Housing vs. Stock Market Appreciation |
In the above graph (click to expand) the blue line shows Shiller's nominal home price index, treating 1900 as 100. As a reminder, Shiller's methodology attempts to track the price of a home of constant size and quality; it adjusts out the upward price drift caused by the average home becoming larger and more feature-rich over time. The red line represents yearly closing prices of the Dow Jones Industrial Average (DJIA) -- again treating 1900 as 100.
In both cases, we're using nominal, "then current," dollars -- i.e., I have not adjusted for inflation. In both
Sunday, April 1, 2012
March 2012 Stock Market Update
Dow Index Monthly Closes Through March, 2012 |
Dow Approaching All-Time High
Well, maybe I'm a touch premature, but consider this.... the Dow set another 52-week and multi-year high on March 15. To top this high, you'd have to go all the way back to 2007 -- back to early in the descent from the all-time peak established on October 9 of that year. That shows you how far we have come in the three short years since the market bottomed in March of 2009. The Dow has more than doubled since its lows of 2009, and is now
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