Explore the World's Best Ideas
Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.
How Much Does the Stock Market Return?
Most analysts agree that historically the stock market has returned an average of 7% — 10% per year over the last 100+ years.
Now, the first thing to understand is that 7% — 10% is an average return over long stretches of time. It’s not what you should actually expect to return each year.
For example, in 2008 the S&P 500 (a collection of the 500 biggest companies on the market) returned a devastating -38.5% loss as the stock market crashed. The very next year, it rallied for a strong +23.5% return.
22
564 reads
How Much Do Dividends Contribute to Stock Market Returns?
History shows that dividends play a large role in stock market returns over time.
While it varies by decade, over time dividends have contributed about 40% of the total return of the stock market.
22
365 reads
While Some Investors Are Good at Buying Stocks, Most Are Not
Most investors tend to make big mistakes that prevent them from achieving 7% — 10% annual return.
The average investor tends to make common mistakes that devastate his returns. Extraordinary investors can actually beat the market over the long term, earning more than 7% — 10% in annual returns. Every extra percentage point of annual performance will make an enormous difference in your long-term wealth. The magic of compound interest is the key to compounding your returns over the long term.
19
272 reads
Stocks and Compound Interest — 5 Big Lessons
When it comes to the power of compound returns in the stock market, there are five very important takeaways:
- The longer you’re invested in the market, the more your money will grow.
- The higher your annual investing returns, the more your money will grow.
- Small improvements in your investment returns can make a HUGE difference in your wealth over time.
- The more you can avoid paying taxes on your investment gains, the more your money will grow.
- Solid stock investment returns compounded over long periods of time create almost magical amounts of wealth.
26
299 reads
IDEAS CURATED BY
Steven Love's ideas are part of this journey:
Learn more about economics with this collection
Identifying the skills needed for the future
Developing a growth mindset
Creating a culture of continuous learning
Related collections
Similar ideas
8 ideas
Investing for beginners
moneysavingexpert.com
9 ideas
Best Investing Strategies | Millennial Money
millennialmoney.com
8 ideas
5 Differences between Investing and Trading
motilaloswalmf.com
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates