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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (67804)	5/8/2005 6:18:08 PM
From: Lazarus_Long	Respond to of 77400

finance.yahoo.com If you look at this, if you exclude 1995-2000 (those years Lizzie considers "normal"), the SP500 stock trend from 2003 (the apparent bottom of the buuble burst) until now appears to be simply a continuarion on the the trend before 1995 (the start of the bubble). On 12/31/1969 the SP500 closed at 17.63. (LIZZIE: That date was chosen because it is the earlist Yahoo provides. No other dirty tricky reason.) On 12/31/2005 it was 1213.55. That's 36 years. The formula for compound interest is A = P*(1 + r)^N where r is the annual interest rate, N is the number of years (36 in this case), P is the beginning principal (17.63 in this case), and A is the final amount (1213.55 in this case). Rearranging, r = (exp( ln(A) - ln(P) )/n ) - 1 and r is about 0.117 or 11.7% in this case. Note this does not include cash dividends.