The 100 year average for the S&P 500(r) is about 10%. 10% sounds pretty great! But, it is imperative as an investor to understand the resolve it takes to get that 10%. Let’s consider someone born in 1922 with a $100 gift. At 10% on average each year, that $100 would be $1,378,061.23 today. Not bad! Now, let’s review the journey of that $100 required to achieve the average.
The reality is capital markets ARE the crystal ball. The economy follows. We never know when markets will go up. The most important challenge is sticking with it when times are difficult, ensuring you’re participating during all of those positive days and time periods. October 2022 was the best month for the DJIA since 1976 - discipline to start Q4 2022 paid off to those who had it!
Sources: dimensional.com, finance.yahoo.com S&P 500 (r) 1922-2022, Hartford Funds '10 Things You Should Know About Bear Markets', seekingalpha.com, wsj.com 'The Dow Just Notched its Best Month Since 1976'
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