The Bumpy Road to the Stock Market Average Return
May 12, 2020 Author: Tess Downing, MBA, CFP®, Complete View Financial
The US stock market has averaged about a 10% annual return since 1926, but it’s usually well above or below that mark in a given year. Understanding the average stock market return range can help investors ride out the ups and downs. Many investors believe that their annual return should be close to the average return they are seeking or was modeled in their plan. However, we must remember that this is only the average of the past 94 years! The variability of returns for any specific year does not typically even come close to the average. This can be frustrating but it is important to remember this range and the fact that we must focus on the long-term.