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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: rayvt 🐝  😊 😞
Number: of 15055 
Subject: Abnormal returns right after WW2?
Date: 04/24/2025 9:59 AM
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Well, darn, somebody wrote in a post here that the US economy was perhaps artificially boosted after WW2 because all the other countries got hugely damaged. That condition is far in the past, so maybe the US returns will sink back to "normal".

But I couldn't find that post to tack on this as a reply, so I had to make a new post. Sorry.

Since I have the S&P 500 data in a spreadsheet it is easy enough to test that conjecture. "If we start the backtest right after the end of WW2, is the long-term return abnormally high?"

Here's the data:
S&P 500, all dividends reinvested.
2/5/1950 - 3/4/2024
11.4% CAGR
10.6% Slope
-51% MaxDD
1.05 Sortino
15% stdev

1/3/1960 - 3/4/2024
10.2% CAGR
10.6% Slope
-51% MaxDD
0.88 Sortino
16% stdev

1/11/1970 - 3/4/2024
10.7% CAGR
11.1% Slope
-51% MaxDD
0.93 Sortino
16% stdev

1/6/1980 - 3/4/2024
11.9% CAGR
10.5% Slope
-51% MaxDD
1.03 Sortino
16% stdev

It looks like the answer is: Perhaps a bit, but not really much.
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