Equity valuation and not caring

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HEDGEFUNDIE
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Joined: Sun Oct 22, 2017 2:06 pm

Re: Equity valuation and not caring

Post by HEDGEFUNDIE » Sun Apr 14, 2019 9:11 am

cjking wrote:
Sun Apr 14, 2019 7:17 am
HEDGEFUNDIE wrote:
Fri Apr 12, 2019 12:55 pm
If you had invested a lump sum in stocks at the very top of the dotcom boom in 2000 (i.e. ridiculously high valuations), you would have experienced 5.7% CAGR through the past 19 years.
I've just had a look on moneychimp, and with dividends reinvested and adjustment for inflation they say the CAGR was 2.64%, for the period 1 Jan 2000 to 31 Dec 2018.

Edited to add random observation: Vanguard UK's web site is showing their European tracker ETF VEUR on a dividend yield of 3.37%, as of the end of March.
I don’t like using inflation-adjusted returns for investments because you don’t actually experience inflation in an accumulating account that you don’t touch. What you experience are the nominal balances that pop up on your computer screen.

But if you insist, Portfolio Visualizer shows 2.95% real:

https://www.portfoliovisualizer.com/bac ... 0&total3=0

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