I don’t usually talk about specific stocks on this site, as I prefer to focus on money supplies and interest rates. But, for September’s newsletter, I have been looking at oil and tobacco stocks as commodity/inflation investments. I thought I would share this graph comparing the S&P 500, Altria (MO), and the money supply. Dividends were re-invested.
Between January, 1970 and August, 2011, the S&P returned 1,221.49%. The money supply increased 1,472.87% over the same time, so S&P investors actually lost wealth. Altria’s stock, by comparison, increased 118,550%. Not all tobacco stocks do well over the long term (Japan Tobacco, I’m looking at you), but some of them have outperformed gold.
I especially look forward to sending out September’s newsletter. Contact me (firstname.lastname@example.org) if you are interested in receiving a copy.