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The key is consistently. The S&P 500 returns are wildly variant, and the 9~ % only comes from averaging a century of growth. Whole decades might see a loss.
by Simon_says 8y ago
The key is consistently.
The S&P 500 returns are wildly variant, and the 9~ % only comes from averaging a century of growth. Whole decades might see a loss.
- TomVDB 8y agoBased on numbers here: https://seekingalpha.com/article/2789035-s-and-p-500-index-returns-by-decade-since-1940 https://seekingalpha.com/article/2789035-s-and-p-500-index-r... 1940-1950: 9.3%/y 1950-1960: 20.0%/y 1960-1970: 7.7%/y 1970-1980: 5.9%/y 1980-1990: 17.2%/y 1990-2000: 18.2%/y 2000-2010: -1.0%/y So only decade with negative growth. Add in the depression and you'll probably see a bunch more...
- fujimotos 8y agoYou need to consider inflation. In 1970, the inflation rate was 7-8%/y on average, so the "growth" these numbers imply did not exist in reality.