4 ms·
10% annual is not huge at all, it would actually be on the lower end of a year that had positive gains. 10% average is what you should expect for the SP500 - an
by hexedpackets 5y ago
10% annual is not huge at all, it would actually be on the lower end of a year that had positive gains. 10% average is what you should expect for the SP500 - and that tends to be driven by lumps, years with returns >20%.
50% is high from a historical perspective but there are plausible explanations for why it's not absurd.
- mahogany 5y agoI remember 7% being the historic average that all the classic investing books said. I think it's after adjusting for inflation and dividends. How are you calculating 10%?
- waheoo 5y ago7% is adjusted for inflation. 10% is the nominal average. An up year is commonly 10-15% with down years being more severe but less frequent.
- SuoDuanDao 5y agoBy my understanding, 7% is average for any given year. Average for a year with positive gains would have to be quite a bit more to balance out even the occasional negative year.