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The Average Stock Market Return in the Last 10 Years: How to Compare Your Returns To The Average

 

The Average Stock Market Return in the Last 10 Years

Average Stock Market Return in the Last 10 Years Every stock market investor has a different set of goals and risk tolerance, so the rate of return will vary. If you're looking for a conservative but consistent way to grow your investments, an average stock market return over the last 10 years is a good place to start. The average stock market return over the last 10 years has been 10.8% This is a stock market return calculator that can tell you the average return of the stock market over the last 10 years.

     

    The Average Stock Market Return in the Last 10 Years

    If your returns were below the 10.8% average, you can learn from your mistakes. However, the only time you can expect to grow your money is if you invest it all in one stock or investment. If you want to learn how to pick stocks, read The Four Factors that Make the Stock Market Work, and invest in the best companies. Continue Reading Below ADVERTISEMENT Risk The more you think about your investment, the more you can take on. But a balanced approach that includes investing in a variety of companies reduces your risk. Each stock market investor is different, so consider risk factors such as company reputation, financial conditions, country risks, and more.

     

    What is a stock market return calculator?

    A stock market return calculator tells you what the average stock market return was for a specific time period. It also lets you see how you compare to that average. What is a 10-Year Average? To calculate the average 10-year stock market return, you need to divide the average stock market return by the number of days in the last 10 years. The number of days in the last 10 years represents the number of days that have passed since the beginning of 2009. Is 10% Good? The most frequently asked question on the topic of a stock market return is, "Is 10% good?" It depends. If you have a very long-term investment time horizon, then 10% is fine. 10% is great for a retiree who will live off a stock portfolio for the next 50 years.

     

    The Stock Market and You

    Even if you have different goals and different risk tolerances, you can still use this stock market return calculator to make comparisons over different time periods. For example, let's say that you have an idea that you really want to work on and you need $20,000 to get started. You want to be conservative in your investments so that you're never in a hole so deep that it's difficult to dig yourself out of, so you're going to set your initial investment goal at $1,000 and work up to $10,000 as your risk tolerance increases. Now let's say that on January 1, 2017, the stock market's average return was 11.2%. On January 1, 2018, the average stock market return was 6.9%, so on January 1, 2019, your rate of return will be 2.2%. Is it still a good time to invest?

     

    How to track your investments

    Any good financial advisors will tell you to invest your money in index funds. Not only does this provide a consistent, low-cost investment that will track the S&P 500, but it also keeps you out of the stock market if you're concerned about market volatility. This "smart beta" strategy has been in practice for a number of years and is designed to provide investors with greater returns and risk mitigation. You can track your stock investments through an online brokerage account or, if you prefer to do things the old-fashioned way, with an index fund. This will require keeping a log of your stock investments and adding to your position as your portfolio value increases. Advisor takeaways In the past 10 years, the stock market has been on a tear, more than doubling in value.

     

    Conclusion

    All stock market investing involves risk. That's why it's important to understand that when selecting your investments, the risk is a part of the process. Stock market investments can go up and down. And with that, you are taking the chance that they may not increase in value. But investing and playing the odds is always worth it to you.

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