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I 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 calcul
by mahogany 5y ago
I 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.