Today's market opportunity
Looking at how the stock market has performed decade-to-decade, it's clear that if present trends continue, the current decade will be among the worst on record. Despite this challenging environment, the long-term record may give us hope for the future.
A reversal of fortune
As we entered the new millennium, the stock market was coming off of two consecutive decades that ranked among the best of all time. In the 1980s, the Standard & Poor's 500 stock index rose on average 17.55% per year. The 1990s were even better, as the market returned 18.20% per year. Through the first eight years of the 2000s, the S&P 500 has averaged just 1.66% per year. The only historical period with a lower return in the last nine decades is the 1930s, the era of the Great Depression.
An encouraging sign
The stock market has never had weak-performing decades in succession. While the current market environment is difficult, you should keep your long-term financial goals in mind and take advantage of the long-term opportunities of the markets.
Source: Ibbotson. The S&P 500 Index is an unmanaged index commonly used to measure stock performance. S&P 500 Index returns assume reinvestment of all dividends and capital gains. It is not possible to invest directly in an index. Past performance is not a guarantee of future results.
