A.I.M. Users Bulletin Board

[ls7550]

Hi Steve

Is that 100k starting point inflation adjusted? If so, what was the value in 1871 dollars?

If only someone could live so long

The way Prof. Shiller presents the data has the more recent real 1871 start date price = 82.85, nominal 4.44 (more recent real price = 1818)

For that AIM the initial capital $ was assumed to be 1000 times the real start date price, so initially 500 shares, $41,427 amount (and being 50-50 stock/cash = $41,427 cash)

Total return AIM grew the initial real $82,855 amount 2950 times over the 143 years (with cash uplifted by the real gain (loss) in cash (one year interest rate) and supplemented with the real dividend amount for each period (for however many shares/stock value was held).

They say that the first person that will live to age 1000 has already been born. i.e. medical improvements extend life expectancy at a faster rate than the duration it takes to develop such improvements.