Category: Education, Philosophy
Illustration of the Month: In the Markets, Average Is Uncommon
In the wake of February’s recent market volatility (after a nice, long lull), we thought this would be a good time to remind our readers how unusual it is for markets to deliver their “normal” average returns in any given year.
For example, while the S&P 500 index has delivered average returns of around 10% per year since 1926, the six orange dots in our “Illustration of the Month” below are the only years it’s actually toed the line of its long-term average.
What’s the real “norm”? Expect volatility far more often than not along the road to future growth.