top of page

3 Things 12-11 A Clarification

12-11-20

A Clarification On Thing Two From 12-11-20

We noted the following for the stock market returns for three successive 30-year periods:

1926-1956: +10.77%

1956-1986: +9.63%

1986-2016: +9.99%

An important point of clarification is that the returns cited above were annualized rather than cumulative for those periods. The annualized returns shown above are essentially the returns per year over those periods, taking into consideration compounding and dividend reinvesting. The cumulative rate (the ending price of the S&P 500 minus the beginning price) for any of those periods would have been much higher. For example, the cumulative rate of return for the period from 1926-1956 was +1,843%.

Thanks for reading and sharing!

Comments


bottom of page