Kunpeng Project
The Shanghai Composite and the Dow are representative indices of China and the United States, respectively, which have generated some doubts in the minds of investors in recent years. Especially this year, the world's major ** have hit new highs, while A-shares are relatively weak, and some investors have begun to question whether A-shares still have long-term investment valueTo clear up this puzzle, let's compare the SSE and the Dow Jones from the perspective of historical compound annual growth rates.
First, let's look at the data from the entire historical period. Since its inception in 1896, the Dow has risen 913 times, with a compound annual growth rate of 573%。Since its establishment in 1990, the Shanghai Stock Exchange has risen 29 times, with a compound annual growth rate of 1052%。Although the Dow is relatively strong in terms of gains, the Shanghai Composite has more than doubled the Dow in terms of compound annual growth rate. This means that the SSE has performed better and more attractively in terms of long-term investment returns throughout history.
Some people may argue that the Dow was established earlier, and the background of the times is different, so it is not comparable. Let's compare the data of the Dow Jones over the same period after the establishment of A-shares.
Taking the past 33 years as an example, on December 19, 1990 (the date of the issuance of the Shanghai Stock Exchange), the Dow Jones was 262673 points, a cumulative increase of 14 times in 33 years, with a compound annual growth rate of 968%。In contrast, the Shanghai Stock Exchange rose 29 times in the same period, with a compound annual growth rate of 1052%, which is also better than the Dow in this time span. This is still a comparison made when the Shanghai Stock Exchange has adjusted sharply and the Dow Jones has hit a record high, which is not conducive to A-shares.
In short, whether it is from the whole history or the same period in the past 33 years, the compound annual growth rate of the Shanghai Stock Exchange is significantly higher than that of the Dow. This illustratesFrom the perspective of long-term investment, the Shanghai Composite Index is more valuable for investment. Why do some investors have the illusion that the Dow is a more valuable investment than the SSE?