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Tools & Methodology 3 min read

How We Model Global Equity Returns Before 1990

MSCI World only starts in 1969; truly global series are sparse pre-1990. Here's how we extend the data backwards for FIRE planning.

TL;DR

Pre-1990 global returns are reconstructed from country-level series in the Dimson-Marsh-Staunton dataset (1900–) and Shiller (US back to 1871). We use GDP-weighted blends with documented assumptions when no direct global series exists.

In short

The honest answer: pre-1990 global data has more uncertainty than US-only Shiller. We document the assumptions in the simulator and offer a 'US only' toggle for users who want the cleaner data series. For most FIRE planners the difference between the two is small.

More on this soon

We're working on a full deep-dive for this article — including historical data, charts, and worked examples. In the meantime, you can run a free simulation to explore the underlying numbers yourself.

Frequently asked questions

Why is non-US data so much worse before 1990?
Two world wars, hyperinflations, and capital controls disrupted equity markets in most countries. Reliable index data is hard to assemble. The DMS dataset is the most comprehensive academic source.
Should I trust pre-1990 global simulations?
Less than post-1990. For high-stakes planning decisions, lean on the US-only Shiller record where the data is cleanest.

Stress-test your own FIRE plan

FIRE Wealth OS runs your savings rate and expenses against every historical market starting point since 1871. Free to use, no card required.