Yearly Average Stock Market ReturnWhat is the yearly average stock market return? That is a question that is often on new investors minds, and rightfully so. The historical stock market returns are something for you to take note of. It is proven that the average return for buying and holding the market has been around 10%. But what does that mean? Does it mean that if you buy a market index now and wait 20 years you should expect to receive an average return of 10%? Well no, you might receive a return of 5% annually or maybe 15% annually. As the old saying goes “past performance does not guarantee future results” The only thing we can take away from historical stock market returns is that buying and holding has worked in the past and will most likely continue to work in the future. It is also important to remember that just because 10% is the average return that does not mean that you cannot beat the market. Look at Warren Buffet, a man who has an average return over twice that of the stock market. In fact many different investors have consistently beat the market. In other words don’t become fixated on that 10% return idea, nothing in life is a guarantee. If there was no risk there would be no reward! Return from yearly average stock market return to stock trading tips
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