When we are talking about the “Historical Average Of The Stock Market Return” we need to also talk about the S&P 500.
S&P 500 for these of you who don’t know is basically a form of investing index fund which comprises about 500 of America’s largest publicly traded companies. But S&P 500 is also considered to be the benchmark measure for annual returns.
The entire stock market is centrated for the long-term investments. Long-term investments means a period which is longer than 5 years.
But if you are interested in the short-term investments you would want to consider very highly to choose lower-risk options. At the same time you would want to expect as well to earn a somehow lower return.
And if you try to follow what investors say you may get a little bit confuse because when they say “the market” then they mean basically the S&P 500.
When it comes to the percentage of the stock market return then the 10% is just a number before the inflation.
Investors now on days expect to lose purchasing power of around 2% to 3% every year due to inflation
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