Wednesday, October 14, 2009
Inflation Adjusted, Where's the best place to make money?
In the last ten-years we've seen the Dow Jones Industrial Average ($INDU) hit 10,000 twice, although being just a number, clearly some would say you are even...but are you when adjusted for inflation?
The Dow Industrials from Oct. 1999 through Oct. 2009 has actally had a -20% return although it's at 10,000, gasoline then was $1.20 per gallon and now it's a average price nationally is $2.60. The US Dollar was 100 now it's at 76; Crude Oil per barrel was $16.44, currently $75 (set to break higher) and gold was $280 per ounce now at all-time highs of $1070...but has more to go adjusted for inflation !!!
However, going back to 1980, the inflation adjusted returns would have been: +17% for a home, +42% for gold...and +360% in the Dow Jones.
Below are several "Inflation" adjusted charts that really tell the story.
*click charts to expand images