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Show HN: Inflation-adjusted stock charts – Total Real Returns (totalrealreturns.com)

507 points by compumike · 1521 days ago · 272 comments on HN

Article summary

The article presents inflation-adjusted stock charts, showing the total real returns of different asset classes, including stocks, savings, and cash, since December 31, 1926. The charts reveal that the broad US stock market has grown at a rate of 7.07% per year, while the purchasing power of the US dollar has decreased by 2.91% per year. The article highlights the importance of considering inflation and reinvested income when evaluating investment performance. The site provides various charts and data to help users understand the growth of $10,000 investments in different asset classes over time.

Main themes

  • inflation-adjusted investing
  • stock market performance
  • wealth creation and destruction
  • currency value and demand
  • asset pricing and valuation
  • economic complexity and uncertainty

What commenters say

  • Wealth can be created or destroyed, and it is not solely dependent on the amount of money in circulation.
  • The value of a dollar can move inversely with the value of goods, but this relationship is not always straightforward.
  • The stock market and currency do not necessarily move inversely, and their relationship is influenced by various factors, including supply and demand.
  • The concept of wealth is complex and cannot be reduced to a single metric, such as the amount of money or the value of assets.
  • The demand for stocks and other assets can affect their prices, but it does not necessarily impact the value of the currency.
  • The creation and destruction of wealth can occur through various means, including changes in productivity, technology, and resource availability.
  • The relationship between the stock market, currency, and wealth is influenced by a complex array of factors, including economic conditions, interest rates, and investor sentiment.