Know your numbers — it will help. May 7, 2017

Last week, I introduced important analytical terms (nominal and real) and tested the Wall Street mantra, “Don’t worry, the market will always come back.” We discovered when using real inflation-adjusted data, not all markets recovered from their 2000 highs. The Nasdaq is down 17 percent.

Here’s the action point — after learning the difference between nominal and real data, analyze your monthly brokerage statement. Are your investment values represented with nominal data, real data-adjusted for inflation, or better yet do you see the net (price minus total expenses)?

Today, we will add a security with dividends to the chart to see if they make a difference.
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