Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between.
- Annual returns came within two percentage points of the market’s long-term average in just six of the past 97 years.
- Yearly returns have ranged as high as up 54% and as low as down 43%.
- Since 1926, annual returns have been positive 71 times and negative 26 times.
Understanding the range of potential outcomes can help you stick with a plan and ride out the inevitable ups and downs.