High Rate CD vs. S&P 500

High Return Savings Account — Thu, 29 Oct 2009 01:15:37 +0000

I was wondering how high rate CDs performed against the S&P 500 the other day (yes I have too much time on my hands) and decided to take a look. In truth what really prompted me to start doing a little digging was the stock market nose-dive in March followed by the run-up in prices later in the year this year. In all honesty I picked an arbitrary start date based on the first web page I ran across with any historical data. That page had data as far back as 1993 so I figured, “Why not start there?” What was not arbitrary was the ending date. I took the ending date as year end 2008, which excludes the recent euphoria and rebound made via the easy monetary policy of the Fed and the Government Stimulus spending program. I thought that rather than cherry pick the best high rate CD for the period I figured I would just take the average 6 month CD APR from the Federal Reserve databank and compound it into an equivalent annual rate. These days I have been very strong in favor of short term investing, and each day the S&P 500 rises I grow [...]

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High Rate CD vs. S&P 500