**The Times article pointed out that a major event in the capital market recently is the frequent outbreak of the Shanghai Composite Index point defense war: first 3,000 points of defense, and then 2,900 points of defense. In the new era, the Shanghai Composite Index, which is located in the center, will inevitably receive a lot of ridicule. In fact, the long-term growth rate of the Shanghai Composite Index is very high, even much higher than that of many long-established ** indices.
According to the data, the Dow was released on May 26, 1896, and it has a history of 127 years by 2023. In these 127 years, the Dow has grown from 4094 o'clock ** to 3740,000 points, a cumulative increase of 913 times. Some people may say, look at the ** of the United States, which has risen 913 times, how much wealth has been created. But this 913-fold increase was achieved in 127 years, and the Dow Jones has a compound annual growth rate (CAGR) of 55%。The Dow has made 5 in 127 years5% CAGR, what about the Shanghai Composite Index?The answer may surprise many investors who ridicule the Shanghai Composite Index, which has almost twice the CAGR of the Dow. The base period (i.e., the establishment date) of the Shanghai Composite Index is December 19, 1990, and the basis point (the initial point) is 100 points. On December 21, 2023, 33 years after its establishment, the Shanghai Composite Index was at 2,918 points. The cumulative increase in 33 years is 28 times, and the CAGR is 108%, almost twice as much as the Dow.
After comparing the Dow, let's take a look at the S&P 500 (S&P 500 for short). The S&P 500 has been compiled by the Standard & Poor's since 1957, but its base date was back in 1928 with a basis point of 10 points. As of December 21, 2023, the S&P 500 closed at 4,746 points, up 474 times in 96 years, with a CAGR of 66%, and its long-term growth rate is only about 60% of the Shanghai Composite Index. Even the Nasdaq Composite Index (referred to as the "Nasdaq"), the leading index representing the U.S. technology industry, has a CAGR that is not as good as the Shanghai Composite Index since its inception, which is definitely a thing beyond the cognition of many investors. From 100 points on February 8, 1971 to 14,963 points on December 21, 2023, the Nasdaq has grown 149 times in 53 years, with a CAGR of 99%, still compared to the 108% should be low.
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