Back in March, we here at Don’t Quit Your Day Job… reported the actual all time high in the S&P 500 using the only methodology that matters – adjusting for inflation and reinvesting dividends. Since there was a fair bit of excitement (and bubble talk!) when the NASDAQ closed over 4000 on Tuesday for the […]
Today was the all time high closing price for the dividend reinvested, inflation adjusted S&P 500. I know that much of the financial world has been rambling about the continual new highs in the stock market. You haven’t been, though… you read my post earlier this year where I originally pointed out the right adjustments […]
Well, glad that Fiscal Cliff thing is over. Seriously – we sweated a crisis that was created by politicians, that politicians are now happy they averted. Consider that! Dividend Cliff… Kind of Averted Since most of you readers are also avid investors (check out our stock picks for 2013, and our solid S&P 500 beating […]
Subtitle: Until You Read This Article.
I’m not one for hyperbole… I’m more of a “here’s the data, deal with it” person, but I’ll make a vast blanket statement for you today. You see, you may not care too much either way about the whole ‘fiscal cliff’ scenario, where an expiration of the so-called ‘Bush Tax Cuts’ of 2001 and 2003 would reset to their previous levels. Perhaps you make under $200,000 as a single or $250,000 as a couple, so if the cuts expire and President Obama extends them in a second term you wouldn’t worry too much. Fine – I won’t spend this article discussing what the appropriate level of taxation is for the many strata of incomes earned in this country. However, I do want to draw your attention to the insidious effect of rolling back the 2001/3 cuts – namely, how the code characterizes dividends.
Calculate the total return on the S&P 500 between two dates including reinvested dividends and inflation.
What should you make about the Mark Hulbert article claiming that top market timing newsletters are bullish heading into the new year? After a 27.76% increase in the value of the S&P 500 (not counting dividends) in 2009, how much further does the stock market yet have to run? And what does a bullish consensus among market timers mean, exactly?
Carnivals and awesome links for the week starting September 21.
Master Limited Partnerships are publicly traded Limited Partnerships, most often investing in the extraction and transportation of raw materials. A limited partnership is a limited liability corporate structure which contains Limited Partners, and at least one General Partner. This gives the funds great tax advantages with liquidity advantages coming from their listing on a public exchange. The lack of understanding of MLPs also means they are a great place to start looking for market pricing disconnects and investment opportunities.