The Historical Average Of The Stock Market Return Is 10%

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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