Stock Decline Hits Depression Levels

From BusinessWeek:

During the darkest 10 years of the Great Depression, from September 1929 to September 1939, the stock market dropped roughly 50%, adjusted for inflation. With today’s drop in the stock market, the U.S. has now matched that unfortunate milestone. The Standard & Poor’s 500-stock index, adjusted for inflation, is now down about 50% over the past 10 years from Feb. 17, 1999 to Feb. 17, 2009.

Other assets have done much better over the same period. For example, a nice safe investment in six-month certificates of deposit would have yielded a real total return of roughly 12% over the past 10 years. And despite the recent real estate bust, residential home values in the largest cities, adjusted for inflation, actually increased by about 30% over the past decade.

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