Economy

progree

(11,463 posts)

2. Looking at the Wilshire 5000 total U.S. market index, which is far more representative

Sat Apr 29, 2023, 12:22 AM

Apr 2023

Last edited Sat Apr 29, 2023, 01:43 AM - Edit history (1)

of the total U.S. stock market than a legacy price-weighted average of 30 blue chip stocks:

The Wilshire 5000 reached its all-time closing high of 48,952 on 11/8/21. Today, 4/28/23, it closed at 41,064, down 16.11% from that high.
https://finance.yahoo.com/quote/%5EW5000/history?p=%5EW5000

In that time frame, the CPI increased from 278.711 to 301.808 (November 2021 to March 2023, the latest):
$301.808 is needed today to purchase what $278.711 did in November 2021.
https://data.bls.gov/timeseries/CUSR0000SA0

So the total U.S. stock market index fell to (41064/48952)*(278.711/301.808) = 0.77467 in purchasing power

Meaning a $100,000 nest egg in the U.S. stock market at the 11/8/21 peak now has only the purchasing power of $77,467 (a 22.5% drop in purchasing power).

So yes, for sure its better to stick to that rather than fall some more, and I'm glad its better than it was at its recent low point.

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The Dow is UP THERE! Please stick. nt [View all] sprinkleeninow Apr 2023 OP

Well, there could be a lot of volatility as the debt ceiling deadline approaches Fiendish Thingy Apr 2023 #1

Looking at the Wilshire 5000 total U.S. market index, which is far more representative progree Apr 2023 #2

Investors are getting used to the risk-free rate they need to beat. Frasier Balzov Apr 2023 #3

About the only thing that will work is another massive cash infusion Warpy Apr 2023 #4

Investing is open-access regardless of party affiliation. Frasier Balzov Apr 2023 #5

Of course, every fast food worker and checkout clerk is permitted to invest Warpy Apr 2023 #6