what is average stock market return 

Historically, the average stock market return has been roughly 10%, before inflation, annually, from the S&P 500 inception in 1926 to 2020. However, returns each year are far from the average.

Investors cannot count on 10% consistent annual growth in any one year, and if we could, it would not be a risky market.

Daily, prices can gyrate wildly with 24-hour financial news chatter you should ignore. Many of the talking heads react to minute updates that often sensationalize blips in the stock markets from arcane and sometimes meaningless information and create anxiety, or worse, mania.

The Stock Market Fluctuates

A securities market index is an indicator of market performance, measuring the average value of several securities chosen as a sample to reflect how the market is doing.

Measuring Stock Market Returns

The S&P 500 composite index is a broader market benchmark, tracking 500 stocks of large, established companies. The index includes 400 industrial firms, 40 financial institutions, 40 public utilities, and 20 transportation companies.

Why S&P 500 Matters

You have a better chance of attaining a 10% average stock market return when you take on a long-term view.

Take A Long Term View of The Market