|There is no denying this year has been a bumpy ride for our health, the economy, and the financial markets. Today was no different, as stocks started the day down in response to a reported 16.4% drop in retail sales for April, then rose again to end the day in the green.|
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, month, week or day may be sky-high, extremely poor, or somewhere in between.
Understanding the range of potential outcomes can help you stick with your plan and ride out the inevitable ups and downs.
- 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.