The biggest investment story of the past decade is that stocks went nowhere. The S&P 500 (SNPINDEX: ^GSPC ) is lower today than it was in 2000. Dividends provided some return, but inflation eroded it out. It has been a dreadful decade for stocks.
But this chart might be the best rebuttal to the "lost decade" argument, and perhaps the most important chart of the past decade:
- The traditional S&P 500 (blue line).
- The S&P 500 Equal Weight Index, which owns the same 500 companies as the traditional S&P, but holds them in equal amounts. That's different from the traditional index, which weights companies by market cap, owning more of the largest companies and less of smaller ones.
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