Unexpectedly Intriguing!
August 15, 2007

We've updated our signature tool The S&P 500 at Your Fingertips to incorporate all the latest data for July 2007, including the inflation data just released by the BLS earlier today.

July 2007 was interesting in that the S&P 500 opened at 1,504.66 on July 2, closed at an all-time high of 1,553.08 on July 19, then promptly dropped to 1,455.27 at the closing bell on July 31. Overall, the index achieved an average value of 1,520.70 for the month, also an all-time high, which is confirmed below in our chart showing the average monthly value of the S&P 500 index from January 1871 through July 2007:

S&P 500 Nominal Index Value - January 1871 through July 2007

For fun, we thought we might show the value of the S&P 500 adjusted for the full reinvestment of dividends over the span for which we have data:

S&P 500 Nominal Index Value, Including Reinvestment of Dividends - January 1871 through July 2007

That's not a mistake - once reinvested dividends are included, we really are over S&P 732,000 as of July 2007! (Kind of makes Dow 36,000 seem like kind of a sheepish prediction, doesn't it?)

In any case, here are the compound annual growth rates for the periods covering the year-to-date, year-over-year and since January 1871 that we found for the S&P 500:

Selected S&P 500 Returns, with Dividend Reinvestment
Annualized Rates Nominal Rate of Return Rate of Inflation Real Rate of Return
Since January 1871 9.2 2.08 7.11
Year over Year 22.78 2.36 20.42
Year to Date 16.03 5.89 10.14

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