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

February 3, 2026

Since 1926, the US stock market has rewarded investors with an annualized return of about 10%. But 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 in just seven of the past 100 years.
Yearly returns have ranged as high as up 54% and as low as down 43%.
Since 1926, annual returns have been positive 74 times and negative 26 times.

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

IMPORTANT DISCLOSURES

This report was first published by Dimensional Fund Advisors LP, an investment advisor registered with the Securities and Exchange Commission.

Past performance is no guarantee of future results. Actual returns may be lower. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful. Indices are not available for direct investment. Index returns are not representative of actual portfolios and do not reflect costs and fees associated with an actual investment.

Shore Point Advisors is an investment adviser located in Brielle, New Jersey. Shore Point Advisors is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Shore Point Advisors only transacts business in states in which it is properly registered or is excluded or exempted from registration. Insurance products and services are offered through JCL Financial, LLC (“JCL”). Shore Point Advisors and JCL are affiliated entities.

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

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