Total Real Returns
p/total-real-returns
Inflation-adjusted stock charts
Mike Robbins
Total Real Returns — Inflation-adjusted stock charts
1
We show wealth preservation and growth more clearly than conventional (nominal-dollar, price-only) stock charts, because we include the effects of inflation-diminished purchasing power, and the effects of reinvesting dividends from the initial investment.
Replies
Mike Robbins
I always found that conventional stock charts were potentially deceptive, since they include neither dividends (which make up a big part of returns!), nor the effects of price inflation over the long run. Here's an attempt to make it better. One potential downside is that it is hard to explain exactly what the y-axis, but I tried on the homepage. Let me know if the "baguettes" story makes sense to you!