Annualized Real Total Returns 100% commercial paper
Posted: Wed Mar 17, 2004 8:00 am
Here are some tables of annualized real rates of returns for commercial paper after 1, 5, 10, 15, 20, 25 and 30 years.
This is for 100% commercial paper. Expenses are 0.20%. I have listed P/E10 as well.
This is useful for making comparisons with tables that include stock investments.
One striking feature of these tables is how often inflation caused major losses for those investing in commercial paper. This effect has decreased substantially in recent years. I associate that change with the advent modern money market mutual funds and good economic statistics. This may help explain the strange behavior that I have seen in how portfolios have behaved in the earlier era of 1871-1920.
Some of the erratic behavior in the early years can be explained as an artifact caused by the precision of CPI numbers.
Have fun.
John R.
This is for 100% commercial paper. Expenses are 0.20%. I have listed P/E10 as well.
This is useful for making comparisons with tables that include stock investments.
One striking feature of these tables is how often inflation caused major losses for those investing in commercial paper. This effect has decreased substantially in recent years. I associate that change with the advent modern money market mutual funds and good economic statistics. This may help explain the strange behavior that I have seen in how portfolios have behaved in the earlier era of 1871-1920.
Some of the erratic behavior in the early years can be explained as an artifact caused by the precision of CPI numbers.
Have fun.
John R.
Code: Select all
0% stocks and 100% commercial paper
Year PE10 1 5 10 15 20 25 30
1871 13.3 5.98 9.44 8.52 8.42 7.74 7.81 6.58
1872 14.5 5.75 9.01 7.58 8.42 7.97 7.82 6.45
1873 15.3 11.57 12.56 7.72 8.02 7.69 7.59 6.11
1874 13.9 12.54 13.44 7.97 7.88 8.03 7.20 6.02
1875 13.6 11.57 7.72 8.29 7.74 7.78 6.21 5.66
1876 13.3 3.91 7.60 7.92 7.18 7.40 6.02 5.46
1877 10.6 24.12 6.17 8.12 7.62 7.52 5.94 5.37
1878 9.7 16.00 3.09 5.81 6.12 6.39 4.86 4.87
1879 10.7 (13.09) 2.76 5.19 6.27 5.67 4.58 4.33
1880 15.3 10.92 8.86 7.75 7.80 5.84 5.25 4.66
1881 18.5 (2.80) 8.24 6.98 7.34 5.63 5.03 4.67
1882 15.7 7.14 10.11 8.35 7.98 5.88 5.21 4.95
1883 15.3 14.14 8.61 7.66 7.51 5.31 5.22 4.65
1884 14.4 15.97 7.70 8.10 6.69 5.06 4.67 4.27
1885 13.1 7.77 6.66 7.27 4.85 4.37 3.84 3.84
1886 16.7 5.90 5.73 6.89 4.77 4.25 3.97 3.59
1887 17.5 0.05 6.63 6.93 4.51 4.02 3.95 3.13
1888 15.4 9.45 6.72 6.97 4.23 4.39 3.87 2.70
1889 15.8 10.46 8.50 6.18 4.19 3.93 3.59 2.01
1890 17.2 3.18 7.88 3.95 3.62 3.15 3.28 1.38
1891 15.4 10.46 8.06 4.30 3.76 3.54 3.17 1.56
1892 19.0 0.47 7.23 3.47 3.17 3.29 2.44 1.76
1893 17.7 18.87 7.21 3.00 3.63 3.17 1.92 1.92
1894 15.7 7.36 3.92 2.11 2.45 2.40 0.76 1.38
1895 16.5 4.04 0.17 1.55 1.62 2.16 0.12 1.26
1896 16.6 6.27 0.67 1.67 2.07 1.98 0.31 1.14
1897 17.0 0.39 (0.16) 1.20 2.01 1.28 0.70 1.15
1898 19.2 1.70 (1.04) 1.88 1.86 0.64 0.90 1.32
1899 22.9 (10.67) 0.33 1.73 1.90 (0.01) 0.88 1.49
1900 18.7 6.66 2.95 2.35 2.84 0.11 1.48 2.01