Following my post this week on the worst 10 year 50/50 stock/bond portfolio returns I received a number of requests from people asking what these performance numbers would look like on a real (inflation-adjusted) basis. Here are annualized the results:
The deflationary period of the 1930s actually improves the performance of those 10-year cycles. A few of these returns did drop into negative territory after accounting for inflation. Two of the negative 10 year returns occurred in the highly inflationary 1970s period while the 10 year stretch from 1937-1946 was just slightly negative.