New Capital Management

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The Bumpy Road to the Market’s Long-Term Average

It’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between.


Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between.

  • Annual returns came within two percentage points of the market’s long-term average of 10% in just six of the past 94 years.

  • Yearly returns have ranged as high as up 54% and as low as down 43%.

  • Since 1926, annual returns have been positive 69 times and negative 25 times.

Understanding the range of potential outcomes can help you stick with a plan and ride out the inevitable ups and downs.

Past performance, including hypothetical performance, is not a guarantee of future results.

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