Thursday, December 31, 2009

The Decade From An Investment Perspective

As we close out the year, we can look at the data and conclude that this was NOT a good decade economically or for investments.

From Econbrowser:

First, the US ended the decade with roughly the same people working as it did in 2000.

nfp_dec_09.png

Also, when you strip out dividends, the S&P 500 nominal price index finished about 20% lower. Adding back the dividends doesn't really help if you also factor in inflation. The last chart shows that real earnings for the S&P 500 dropped precipitously at the end of the decade and finished below where we started.
s&p_dec_09.gif
s&p_earnings_dec_09.gif

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