PortfolioManagement

Discovering the Average Stock Market Return and Effective Investment StrategiesWhat is the Average Stock Market Return? The average stock market return, historically measured by the S&P 500 index, has been approximately 10% per year over the last century. However, this average is influenced by inflation, causing a real return to be around 7-8% annually.Market Volatility and Investment Horizon The stock market is designed for long-term investments, typically spanning at least five years. For shorter durations, lower-risk options like online savings accounts may be more suitable, although the expected return would be lower.The Fluctuating Nature of Returns While the average ...