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<p>[QUOTE="beef1020, post: 2108837, member: 24544"]I understand you have a point to prove, but I think you need to go back and read what I said, and what the author of the linked article said. </p><p><br /></p><p>The 7% return on stocks was an <b>after </b>inflation return. It already took into consideration the effects of inflation. The article states:</p><p><br /></p><p>"In his seminal book "Stocks for the Long Run," renowned economics professor Jeremy Siegel looked at the long-term performance of various asset classes in terms of purchasing power --<b> their monetary wealth adjusted for the effect of inflation.</b></p><p><br /></p><p>With a $1 investment each in stocks, bonds, T-bills and gold, beginning in 1802 and ending in 2006, Siegel calculated what those assets would then be worth.</p><p><br /></p><p>Stocks were the big winners, growing the initial dollar investment into $755,163. Bonds and T-bills trailed dramatically, returning only $1,083 and $301 respectively. But the big surprise was in how badly gold fared during that time, only growing to $1.95."</p><p><br /></p><p>Both the return to stock and the return to gold were adjusted for inflation in this analysis. It's an apples to apples comparison. Feel free to take issue with some other aspect of the analysis, I am sure there are counter-points to make, but how the inflation adjustment was done is doubtfully one of them.[/QUOTE]</p><p><br /></p>
[QUOTE="beef1020, post: 2108837, member: 24544"]I understand you have a point to prove, but I think you need to go back and read what I said, and what the author of the linked article said. The 7% return on stocks was an [B]after [/B]inflation return. It already took into consideration the effects of inflation. The article states: "In his seminal book "Stocks for the Long Run," renowned economics professor Jeremy Siegel looked at the long-term performance of various asset classes in terms of purchasing power --[B] their monetary wealth adjusted for the effect of inflation.[/B] With a $1 investment each in stocks, bonds, T-bills and gold, beginning in 1802 and ending in 2006, Siegel calculated what those assets would then be worth. Stocks were the big winners, growing the initial dollar investment into $755,163. Bonds and T-bills trailed dramatically, returning only $1,083 and $301 respectively. But the big surprise was in how badly gold fared during that time, only growing to $1.95." Both the return to stock and the return to gold were adjusted for inflation in this analysis. It's an apples to apples comparison. Feel free to take issue with some other aspect of the analysis, I am sure there are counter-points to make, but how the inflation adjustment was done is doubtfully one of them.[/QUOTE]
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