Bumpy Road to the Market’s Long-Term Average

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

S&P 500 Index – Annual Returns (1926-2019)

Bumpy Road to the Market's Long-Term Average

Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it is 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.

Shore Point Advisors

This post was prepared and first distributed by Dimensional Fund Advisors.

Shore Point Advisors is registered as an investment adviser with the State of New Jersey. Shore Point Advisors only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Past performance is not indicative of future returns. All investment strategies have the potential for profit or loss. There are no assurances that an investor’s portfolio will match or outperform any particular benchmark. Content was prepared by a third-party provider. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. All expressions of opinion reflect the judgment of the authors on the date of publication and are subject to change.

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