Growth of S&P 500 Thru Crisis and Events from 1970 to 2022: Chart

The US equity market has been one of the best performing markets in the world over the long term. The benchmark S&P 500 has grown steadily through various crises and events from 1970 thru 2022. Based on total returns of the index an investment of $10,000 in 1970 would have risen in value to over $2 million or $,2,209,027 as of March end, 2022. The average annual total return of the S&P 500 index during the period shown was 10.88% which is pretty good.

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Source: Bloomberg. Data from 12/31/1969 – 3/31/22. Past performance is no guarantee of future results. This chart is for illustrative purposes only and not indicative of any actual investment. The S&P 500 index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. Stocks are not guaranteed and have been more volatile than the other asset classes. These returns are total returns and were the result of certain market factors and events which may not be repeated in the future

Source: MARKET PERSPECTIVE CHARTS by Edwin L. “Lee” Peters, III, Peters Financial

The key takeaway is not to focus too much on daily or short-term gyrations of the market and keep an eye on the long term goal of one’s investment in equities.

Related ETFs:

  1. SPDR S&P 500 ETF (SPY)
  2. iShares Core S&P 500 ETF (IVV)
  3. Vanguard S&P 500 ETF (VOO)

Disclosure: No positions

Countries That Allow Dual Citizenship: Infographic

Many countries allow dual citizenship allowing people to take advantage of the best of both worlds. For instance one country may offer excellent job opportunities and earning potential while another country may have better climate or social safety net during retirement. The following infographic shows the countries that allow dual citizenship and other details such as restrictions, if any:

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Source: Insights Artist

S&P 500 Annual Real Total Returns from 1822 to 2022: Chart

The US equity market is one of the best in the world in terms of returns. In the past 151 years, the US stock market has produced an average return of 8.4% per year. The following chart shows the annual real total returns from 1822 to 2022:

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Source: U.S. Stock Market Returns – a history from the 1870s to 2022, The Measure of a Plan

While the above chart is interesting, it is better to look at returns on a decade basis. The chart below shows the returns by decade including the price return, total return and real total return which is adjusted for inflation:

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Source: U.S. Stock Market Returns – a history from the 1870s to 2022, The Measure of a Plan

A few takeaways from the above charts:

  • Over the long run equities yield a positive return.
  • In most decades stocks beat inflation.
  • In the entire period shown above, just during the Global Financial Crisis(GFC) decade, the total return was negative.

Related ETFs:

  1. SPDR S&P 500 ETF (SPY)
  2. iShares Core S&P 500 ETF (IVV)
  3. Vanguard S&P 500 ETF (VOO)
  4. SPDR Portfolio S&P 500 ETF (SPLG)

The Complete List of Constituents of the S&P 500 Index can be found here.

Disclosure: No positions

Countries That Do Not Use Their Own Currency: Infographic

Some countries in the world do not have their own currency. It could be because their economies are too small or some other factors. For instance, a few countries in West and Central Africa use the West African CFA franc and the Central African CFA franc respectively. These countries are former colonies of France and these currencies were created by France to maintain stability and financial control many decades ago.

I came across the following neat infographic that shows the countries that do not have their own currency:

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Source: Insight Artist

Are Emerging Markets Worth Investing?

Emerging market equities have been some of the worst performers in recent years. From political chaos to corruption and everything in between many of these markets have let down investors. Hence many investors have avoided emerging markets like the plague. According to an article at iShares, over the past 5 years as of September, 2022 emerging markets have earned just 1.1% while US stocks soared during the same time period. No wonder global investors have thrown in the towel on these markets. In an ideal scenario, emerging markets should produce a higher rate of return than the less risky developed equities. However this has not been the case.

Despite the awful returns in the past few years, emerging market stocks are worth holding when considered over the long run. The following chart shows the performance of S&P 500 and emerging markets over two decades:

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Source: How to invest in emerging markets in volatile times, iShares

We may never know how emerging equities will perform this year or the next. To avoid missing out on an spectacular gains it is wise to allocate a small portion of one’s assets to these markets. That way if they underperform again one doesn’t lose much but can reap the benefits if they go the other way.

Related ETFs:

  • iShares MSCI Emerging Markets ETF (EEM)
  • Vanguard MSCI Emerging Markets ETF (VWO)

Disclosure: No positions