Historical Stock Market Chart

I recently found this stock market Chart for the last 60 years which I thought I would share with you. While searching Google I came across a good blog post in the interactive investor blog. Here’s the chart:

I recommend you download the full pdf from the iiiblog and have a closer look.

The chart is interesting to me for several reasons, firstly it shows the performance of the stock market over the last 60 or so years both with and without reinvested dividends. This chart is an excellent advert for the High Yield Strategy that I am following (and that I suggest for others!).

According to the chart, £100 invested in 1945 would now be worth £10,000 which is good, but not as good as the £100, 000 if you had reinvested the dividends. The pdf clearly illustrates how powerful dividend growth can be.

The other interesting thing about the chart is the fact that it superimposes historical events onto the chart, you can look and see how various news items affected the market (although this may be more orientated towards my British based readers).