The Growth of 100 Dollars since 1970

There has been a lot of discussion about consumer price inflation recently.

For a slightly different perspective and a longer-term view, take a look at this chart on VisualCapitalist. It shows the growth of $100 by asset class from 1970 - 2023.

 

via visualcapitalist

I was surprised to see how little real estate grew ... but I wasn't surprised by the S&P 500 number. 

The real estate number is more complicated than it appears on the surface (since it factors in leverage, property taxes, insurance, and other expenses). It also factors in the housing market crash, from which home prices took over a decade to recover. 

For some context, here are some key events that highlight the difference between 1970 and 2023:

Technology

• 1970: First microprocessor introduced
• 2023: Artificial intelligence, Blockchain, and Quantum Computing are rapidly advancing

Space Exploration

• 1970: First lunar module lands on the Moon (Apollo 11)
• 2023: Private companies like SpaceX and Blue Origin lead the charge in space travel and exploration

Politics and World Events

• 1970: Cold War and Vietnam War dominate global politics
• 2023: Rise of globalization, social media, and geopolitical tensions between major world powers

Economy and Business

• 1970: Industrial economy dominates
• 2023: Service-based economy and e-commerce have transformed the way we work and shop

Communication

• 1970: Landline phones and snail mail are the primary means of communication
• 2023: Smartphones, social media, and instant messaging have revolutionized the way we connect and share information

These are just a few of the many events that highlight the significant differences between 1970 and 2023.

 

Try to imagine what the next 50 years hold!

 

My guess is that the changes will be exponential.

 

Onwards!