Monday, January 04, 2010
What $10,000 invested 12/31/1999 would be today across various investable thingies:
- S&P 500: $9,090
- Venture capital: $8,800 (for 1999 vintage funds)
- 10-year Treasuries: $18,000
- Raw materials: $13,803
- Gold: $37,852
If, of course, you had put all 10,000 eggs in one basket, which would not have been wise.
Using the CPI calculator from the BLS (http://data.bls.gov/cgi-bin/cpicalc.pl), the inflation-adjusted amounts and returns are below (in 2000 dollars):
Type Value Return
S&P 500 7214 -28%
Venture capital 6984 -30%
10-year Treasuries 14286 43%
Raw materials 10955 10%
Gold 30041 200%
Quick glance at the market returns for the Federal Thrift Savings fund. Feds are not rolling very high on the hog either.
Back in Sept 99 My wife wanted to invest in our favorite fruit company, Apple. I have horrid luck with investing so I offered her $5k to invest in her name to avoid my bad mojo.
At that time the stock was selling for ~ $15.
Yesterday AAPL closed at $214
My wife decided it was too risky and never pulled the trigger on the stock purchase!
That $5,000 investment would be worth ~ $71,000 (ain't hindsight beautiful?)