Inflation Adjusted Index Charts

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Inflation Adjusted Index Charts

Postby C8H18Engineer » Fri May 10, 2013 1:15 pm

Does anyone know of a good resource to provide ongoing inflation-adjusted index values? When I see "stock in record territory" I want to know where we are in real terms.
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Re: Inflation Adjusted Index Charts

Postby jjustice » Fri May 10, 2013 2:50 pm

D. Short periodically gives the inflation-adjusted S&P 500 index for four bear markets. His latest is April 21.
http://www.advisorperspectives.com/dshort/updates/Four-Totally-Bad-Bears.php

John
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Re: Inflation Adjusted Index Charts

Postby #Cruncher » Sat May 11, 2013 3:06 am

On the FRED web site I constructed the following graph which shows the S&P 500 Index in both nominal terms (blue) and adjusted for the changes in the non-seasonally adjusted CPI-U (red). It looks like the inflation adjusted value peaked around the year 2000.
Image
The graph starts January 1957 when the CPI-U was 27.6. Click the graph to bring up a screen where you can edit it. (For example, you can start the graph later than 1957.)

Edit: I changed the base CPI from January 1957 = 27.6 to March 2000 = 171.2. Before, the adjusted line had so little vertical scale that its changes were hard to see. This change makes it easy to see how far we are from the inflation-adjusted high set in 2000.
Last edited by #Cruncher on Sat May 11, 2013 1:30 pm, edited 1 time in total.
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Re: Inflation Adjusted Index Charts

Postby linebanking » Sat May 11, 2013 3:16 am

That is an excellent chart, thanks for posting it. Anyway to represent total international index in this?
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Re: Inflation Adjusted Index Charts

Postby #Cruncher » Sat May 11, 2013 6:24 pm

linebanking wrote:That is an excellent chart, thanks for posting it.
I hope you still like it after my edit (see above).

linebanking wrote:Anyway to represent total international index in this?
I looked in the FRED data series for Money, Banking, & Finance / Financial Indicators / Stock Market Indexes (where the SP500 series is) but couldn't find any International stock market indexes.
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Re: Inflation Adjusted Index Charts

Postby Oicuryy » Sat May 11, 2013 7:16 pm

FRED also has data for the Wilshire 5000 total return index, but only back to 1980. Looks like it is at a record high even after adjusting for inflation. (I plotted the log of the data for the reason given here. viewtopic.php?p=1692808#p1692808 )

Image
http://research.stlouisfed.org/fred2/graph/?g=ilG

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Re: Inflation Adjusted Index Charts

Postby nisiprius » Sat May 11, 2013 8:12 pm

Yeah, I keep wondering where Morningstar's suggestion box is. If they can display their growth charts converted to any of 46 national currencies, from Argentine Pesos to Zlotys, why can't they convert them to Year-2013 U. S. Dollars?
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Re: Inflation Adjusted Index Charts

Postby TO39 » Mon May 13, 2013 11:44 am

the total return chart is more useful to me

thanks
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