Glad you asked that question.
Talking averages are always tricky when you are talking about lumpy numbers.
The average stock market return is the percentage change in the stock market value for one year or a period of years.
Historically, the average stock market return has been roughly 10%,
before inflation, annually, from the S&P 500 inception in 1926 to 2020.
The Stock Market Fluctuates
The shorter your timeframe, the greater the market volatility investors will face.
There are several securities indexes that investors pay attention to and use in their analysis.
Measuring Stock Market Returns And Why S&P 500 Matters
measuring the average value of several securities chosen as a sample to reflect how the market is doing.
A securities market index is an indicator of market performance,
The S&P 500 composite index is the most widely accepted benchmark of the stock market returns,
but the media tends to focus on the Dow.
Swipe up to Continue Reading!