What Is ACTUALLY The Average Stock Market Return?

Economics is my passion and my first love. Why? Because some things seem so logical and then math shows up to the party. When you’re calculating the average stock market return, percentage returns aren’t reliably.

When you have had a loss, it takes a larger percentage growth to return to your initial value. That’s why it’s best to check an online calculator that takes the Compound Annual Growth Rate (CAGR) – my favorite resource for this is the MoneyChimp CAGR Calculator.

What Is The Average Stock Market Return?

The average stock market return depends on the timeframe of the market, what you consider the stock market, and what assumptions you make.

Factors That Influence Your Stock Market Return

Here are many factors that influence your average annual stock market return. Let’s dive into them! - Your Investing Period - Watch The Fees - Don’t Forget To Diversify

Stock Market Returns Aren’t Average

Even when we look at the average stock market returns over a period of 10 years, there is no real average that we can point out.

What Is The Return Going Forward?

When you want to be financially free or go for early retirement, you want to take some kind of return into your calculations.