Investing may earn you more based on oft - quoted long term averages but, consider this, if the market tanks by 50 % in one year, it would take over 7 years of so called «
average stock market returns of 10 %» to return to the same position you were in just prior to the loss, and that is not even factoring in inflation.
From low valuations,
average stock market returns have been strong in both periods where the yield curve was upward sloping and where it was inverted.
Historical returns have ranged between 9 % — 15 %, much higher than
the average stock market return.
The average returns from bond investments have also been historically lower, if more stable, than
average stock market returns.
In general, investors use 10 percent as
an average stock market return over 10 years.
Year in and year out, professional money managers fail to beat
the average stock market return.
From low valuations,
average stock market returns have been strong in both periods where the yield curve was upward sloping and where it was inverted.
I think the important thing to remember is that right now it is possible to achieve higher returns than
the average stock market returns.
Historical returns have ranged between 9 % — 15 %, much higher than
the average stock market return.