Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by fundamental on Wednesday July 13, 2022 @10:26AM
(#32083206)
If the goal is to demonstrate relative performance over time, wouldn't it be useful to use a normalization such that all lines either start at the same point (e.g. simulating investing X amount) or ending at the same point (showing requirement to get to X final amount)?
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Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by compumike on Wednesday July 13, 2022 @10:44AM
(#32083454)
I think that's a reasonable idea and I may try including that option in the future. Right now, the start point is quite arbitrary: it's the first date where we have data for all the symbols requested. And date ranges dramatically affect any sort of relative performance comparison. So in the current code I decided to just normalize to today's nominal-dollar value so that the end values are relatable.
What would the ideal UX be on this?
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by fundamental on Wednesday July 13, 2022 @10:53AM
(#32083560)
If you want to have ragged starting information displaying pricing information for the various symbols in the range they're defined, I'd assume it's much more common that there's different start dates, but they're all defined for today. So, you could have a single checkbox to normalize based upon equal value at today's value and I'd default to having that on. As your baguette argument about the absolute values not having huge significance still applies it seems like it would work with no other modifications (i.e. it doesn't matter that it could require fractional shares and the like).
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by mediaman on Wednesday July 13, 2022 @12:58PM
(#32085441)
Just index it all to the same starting value, which will have the same effect. I don't think this works for the drawdown chart but works for the total return chart.
Usually in economic and financial reporting you show multiple return series by saying, for example, 1989 = 100 and then showing the total return from there for multiple series in the same chart.
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by kaimaoi on Wednesday July 13, 2022 @05:08PM
(#32088782)
Growth of $10K (growth of a hypothetical $10,000 investment) is a chart that is commonly-used to illustrate this. Your chart would then have VFINX, VBMFX, and USDOLLAR start with $10,000 on 1987-08-03 and go from there.
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by irae on Wednesday July 13, 2022 @08:11PM
(#32090359)
Showing $10k way back in the day would be a bit misleading since every graph starts in a different day and the whole idea is that inflation makes $10k translate to different real world value (baguettes) across time.
It could instead show how much back at the start date one would need for it to be todays $10k? Not sure. Maybe absulute dolar values should just be ommited and work only off percentages.
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by ricardobayes on Wednesday July 13, 2022 @03:27PM
(#32087645)
Start every asset at 100k? I might be oversimplifying something, but it would really help to see how each asset performed over time.
Re:Show HN: Inflation-adjusted stock charts – Total Real Ret...
by georgeecollins on Wednesday July 13, 2022 @06:50PM
(#32089727)
Isn't the comparison of relative performance in the trend line? That's a year over year % change for every asset, so it doesn't matter what value you start with.