|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.