This is a very popular question when it comes to the beginners in the investing world. And that’s why we are gathering on this website to talk about this today.
The easiest way to explain what the average stock market return is to follow the history of the stock market and say that the average stock market return is around 10% annually before inflation of course if we follow the history.
However you need to keep in mind that the stock market returns are very, very vary greatly. This means that one year the return may be 50% but in the next two year it may be only 5%.
For almost the whole last century the average stock market was and still is about 10% per year.
When it comes to the mighty S&P 500 then it’s important to mention to say that it is often considered the benchmark measure when it comes to the annual stock market returns.