What Is The Average Return in the Stock Market?
The average stock market return is the percentage change in the stock market value for one year or a period of years.
Talking averages are always tricky when you are talking about lumpy numbers.
Historically, the average stock market return has been roughly 10%, before inflation, annually.
However, returns each year are far from the average,
The Stock Market Fluctuates
Daily, prices can gyrate wildly with 24-hour financial news chatter you should ignore.
Measuring Stock Market Returns And Why S&P 500 Matters
The S&P 500 composite index is the most widely accepted benchmark of the stock market returns of experienced investors.
The S&P 500 composite index is a broader market benchmark, tracking 500 stocks of large, established companies.
Although there are thousands more stocks trading on the US stock exchanges, the S&P makes up about 80% of the entire stock market value.
Take A Long Term View of The Market
You have a better chance of attaining a 10% average stock market return when you take on a long-term view.
Bull Markets, Bear Markets, And Market Corrections
Since 1871, the stock market has spent 40% of all years rising or falling more than 20%. Thus booms and busts are normal.
Swipe up to Continue Reading!
to learn how to save money and invest!
Getting Fast Debt Relief in
What Real Estate Stocks Are and How To Invest In Them