Actually, the market is much lower than it was in 1996
All the headlines are talking about how the stock market has dropped to levels we haven’t seen since 1996. This is obviously a really big deal: if you invested money in 1996, you haven’t made any money. That’s 13 years of no returns.
But it turns out it’s much worse than that. According to the Bureau of Labor Statistics, we’ve had 35% inflation since 1996. So $1 in 1996 is now worth $1.35.
Adding in inflation, we’re actually 26% lower than we were back in 1996.
[Note: 26% = 100% - ($1/$1.35)]
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