S&P Total Return Index Historical Data: A Comprehensive Overview

The S&P Total Return Index is a benchmark for the US stock market that's been around since 1994. It's calculated by Standard & Poor's, a well-known financial data provider.

The index tracks the performance of the S&P 500, which is a collection of the 500 largest publicly traded companies in the US. This gives investors a snapshot of the overall health of the US stock market.

Since its inception, the S&P 500 has consistently outperformed other major stock market indices, such as the Dow Jones Industrial Average.

The S&P Total Return Index has a rich history, and understanding how its historical data was constructed is crucial for making informed decisions.

The data construction process for the S&P Total Return Index starts with monthly stock price, dividends, and earnings data, all beginning in January 1871.

This data set is available for download as an Excel file.

Monthly dividend and earnings data are computed from the S&P four-quarter totals for the quarter since 1926, with linear interpolation to monthly figures.

Before 1926, dividend and earnings data are from Cowles and associates, interpolated from annual data.

Stock price data are monthly averages of daily closing prices through January 2000.

The Consumer Price Index-All Urban Consumers (CPI-U) data begins in 1913, and for years before 1913, it's spliced to Warren and Pearson's price index.

Data are from various sources, including George F. Warren and Frank A. Pearson's Gold and Prices (New York: John Wiley and Sons, 1935), which provides the necessary information for the CPI-U calculation.

The inflation-corrected series are multiplied by a constant so that their value in January 2000 equals their nominal value.

The historical data of the S&P Total Return Index is quite fascinating. The 20-year average stock market return (including dividends) is 10.475%, as of the end of December 2024.

The 150-year average stock market return (including dividends) is 9.381%, also as of the end of December 2024. This is a remarkable figure, considering the ups and downs of the market over the centuries.

The S&P 500 has been around since 1957, but the historical data extends back to 1871, thanks to Robert Shiller's work in "Irrational Exuberance". The data is based on monthly average prices, not a specific day.

Here's a breakdown of the 20-year average returns:

The 10-year average stock market return (including dividends) is 13.316%, as of the end of December 2024, which is significantly higher than the 20-year average.

In recent years, the stock market has delivered more of its profits through capital gains. This is evident in the trend of the S&P 500, where dividends have become less of a significant contributor to total returns.

High inflation rates in the 1970s had a significant impact on the value of dollars invested in the stock market. To accurately evaluate long-term investment returns, it's essential to account for inflation using an index like the Consumer Price Index.

To put this into perspective, if you had invested $1 in 1926, it would be worth approximately $3,000 today, but only if you adjust for inflation.

The Level Chart is a valuable tool for analyzing market trends. It provides a clear visual representation of market performance over time.

Here, we can see that the S&P 500 Returns report is categorized under Market Indices and Statistics.

The S&P 500 is a widely followed index that tracks the performance of the 500 largest publicly traded companies in the US. This index is a key indicator of the overall health of the US stock market.

In the stock market, it's essential to separate the effect of inflation from actual returns. A 1926 dollar has little relation to a 2009 dollar, making it crucial to adjust for inflation when evaluating long-term investments.

The Consumer Price Index (CPI) published by the U.S. Department of Labor is a reliable index to use for this purpose. By accounting for inflation, you can get a more accurate picture of how much can be earned through stock investments over time.

The graph in the article shows a clear trend: in recent years, the stock market delivers more of its profits through capital gains. This is a significant shift from the past.

High inflation rates occurred in the 1970s, which is evident in the graph. This period is often associated with economic instability and high interest rates.

To put this into perspective, consider the following data from Standard & Poor's S&P 500, U.S. Department of Labor, Yahoo Finance, and Robert Shiller from Yale University.

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The rise of remote work is expected to continue, with 73% of companies planning to allow employees to work from home full-time. This shift in work dynamics could lead to changes in the way we live and interact with each other.

The gig economy is likely to expand, with 36% of the workforce already participating in non-traditional work arrangements. This trend may lead to a reevaluation of traditional benefits and job security.

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