Articles

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

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 may be sky-high, extremely poor, or somewhere in between.

  • 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 70 times and negative 25 times.

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

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