Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial Briefs

More Articles  Printer Friendly Version

 

Ten Things About 10-Year U.S. Stock Market Performance

Although a picture is said to be worth a thousand words, out of respect for your time, here are 290 words about this chart of U.S. stock market performance over an amazing decade.

1. Over the 10-year period ended June 30, 2018, the S&P 500 total return index gained +163%, an average annual return of 16.3%, compared to the average annually since 1926 of 10%.

2. From the financial crisis bottom on March 9, 2009, the S&P 500 total return index through June 2018 gained +389% - an average return in those nine years of 43.2%.

3. In the nine-year bull run, stocks "corrected" - market-speak for a decline of 10% to 20% - four times, and each double-digit setback came in the last five years.

4. An investor with perfect timing predicted the March 9, 2009 low during the bottom of the 40% drop in prices in the bear market of 2008-9, which no one could, and then held for the next nine years, despite four corrections.

5. An investor with the worst possible timing, who put their retirement nest egg in stocks at market peak a decade ago, just before values plunged by 40%, in the decade, averaged a return of 16.3% annually.

6. The Great Recession decline of 40% was one of the worst bear markets in modern U.S. history.

7. Those within five years of retiring are at the greatest risk to bad timing and can be mitigated by strategically allocating assets, which is crucial to pre-retirees.

8. America's 500 largest publicly held companies more than fulfilled their role as the engine of growth in a broadly diversified retirement portfolio.

9. Understanding 10 years of stock market performance requires knowing statistics, but mostly depends on knowing the history of domestic and global financial assets, along with economic fundamentals driving growth.

10. No one can predict the end of a bear or bull market or the stock market's next big move.


Email this article to a friend


Index
U.S. - China Trade War Coverage Distorts Economic Reality
How To Give Gifts And Not Trip On The Gift Tax
Give To Charity From An IRA To Lower Your Tax Bill
Staying Realistic About Investing Amid Volatile Market Swings
How To Swap Real Estate And Defer Taxes, Maybe Forever
As A Final Act of Love, Plan Thoughtfully
How To Sell Your Small Business And Pay No Taxes
Risk And Tax Effects Of An Installment Sale Of A Home
The New Math Of Renting Out A Vacation Home
Opportunity Zone Investment Frenzy Requires Caution
The Most Important Financial News Of 2018
Retirement Income Portfolio Survival
Five Key Factors In Funding A Child's Education
Key Tariffs, Rates And Economic Facts To Note In Fearful Times
High Income Earners & Roth Conversion
Time Itemized Deductions To Reduce Taxes

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2019 Advisor Products Inc. All Rights Reserved.
© 2019 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Privacy Policy

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA/SIPC. Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.