4 ms·

Depends on your timeframe. The S&P returned -22% from 1/1/2000 to 1/1/2010, and only +43% from 1/1/2000 to today. The annualized return is nowhere near the 11

• ConnorBoyd 12y ago
  11% might be the long-term historical average (last 75 years or so), but that still sounds pretty high.
• YourCupOTea 12y ago
  You aren't including dividend reinvestment and you are looking at the wrong time frame for the quoted percentage. -5.65% from 1/2000 to 1/2010 with dividend reinvestment +89.85% from 1/2000 to 12/2014 with dividend reinvestment The annualized returns are generally over rolling 30 year periods. which 12/1984 to today is 8.79% without reinvestment or 11.32% with reinvestment of dividends. http://dqydj.net/sp-500-return-calculator/ http://dqydj.net/sp-500-return-calculator/
  • dragontamer 12y ago
    Dividends are taxed at your income btw. So these values only make sense inside a tax-advantaged account. They'll be a bit lower once you factor in taxes, which can be a sizable chuck (especially because that tax difference "compounds" year over year in the reinvestment case)
• nisse72 12y ago
  Exactly. Timing is everything: http://www.nytimes.com/interactive/2011/01/02/business/20110102-metrics-graphic.html http://www.nytimes.com/interactive/2011/01/02/business/20110...