Dow Jones — Here are the last 11 years average return as a percentage
and also actual performance in dollars.
So if you started investing in 2000, this could be your growth.
Let’s begin with a $1,000.00 investment.
Year Percentage Dollars
2000 - 6.17% $ 938.30
2001 - 7.10% $ 871.68
2002 -16.76% $ 725.59
2003 25.32% $ 909.30
2004 3.15% $ 937.95
2005 -00.61% $ 932.23
2006 16.29% $1,084.09
2007 6.43% $1,153.80
2008 -32.72% $ 776.28
2009 18.80% $ 922.22
2010 11.02% $1,023.84
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.….….….…Average Performance Actual Performance
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Total 17.65%
$23.84 divide by 11 years = 1.60% average
divided by 11 years = $2.167 per year
$2.167 divided by $1,000 = 0.002167 or .21% actual return.
Dow Jones is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.
But the question is, were the companies you’re invested in performing at this same level or not? The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average.
The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.
What do you expect the future will bring for your investments?
Watch what Kiyosaki has to say about putting money into mutual funds and retirement plans and investing for the long term with a diversified portfolio.
If you would rather learn how to Become Your Own Banker, in your own private banking system, call me today. Jennifer Hansen 845 – 649-7387 or email me at Jennifer@DebtDiagnosis.com