We’re beginning a brand new sequence right here that can ultimately be a brief paper, however thought we’d drip these articles out each week over the course of the summer season….take pleasure in!
#1 – Regular inventory market returns are excessive
Most traders perceive that shares return about 10% per 12 months over time.
Nonetheless, many traders could not respect the unstable path that shares usually take to attain this 10% return. It’s not a gentle 10%, 10%, 10%.
Over the previous 125 years, the common up 12 months in markets was 21%!
The common down 12 months is -14%.
There are about 3 times as many up years as down years. Actually, there are extra 25% or extra up years than down years.
However the down years nonetheless occur, and after they do, they’re scary. The extra unstable small caps common close to a bear market decline yearly.
Staying the course may be powerful on the trail to 10%.
Because of our intern Ava for the chart and to Ken Fisher for the inspiration!
