You're not taking in to account dividends which would have returned you 5% - 10% a year back in those days.
Now a Coach wrote:
[quote]Brian Boru wrote:
Of course all you need do is type "the real Dow" into google and you can find this in several places.
As you will see, the Dow from its peak in 1929 until the early 90s merely kept up with inflation (it has done quite well since); a not unsubstantial period of time of over 60 years.
The old dividends argument again. Ignoring the fact that the return on fixed income products -- which is where your money would otherwise be invested let's say -- historically (i.e., always until the last 20 years or so) has exceeded dividend yields.
By the way, what stocks paid 10% dividends back in those days? I do recall money markets paying over 10% in the early 80s