SPY
📊 The S&P 500 has historically provided an average annual return of 10.6% before inflation.
💸 After adjusting for inflation, the average annual return is closer to 7.4%.
📉 Current high valuations suggest future returns might be lower, around 3-4% annually.
🤔 Long-term returns are driven by earnings per share growth, which has averaged around 7.5%.
@adriarivero:
“If we look specifically at the stock market, the American stock market has performed the best in recent years. Its benchmark index, the S&P 500, which includes the 500 largest companies in the United States, has had returns between 7% and 10% in recent years. Specifically, if we look at the American market, we can see that the average over the last 100 years has been 10.6% annually, including dividends, nominally. If we adjust for inflation, we get 7.4% annually, including dividends. Looking at the last 50 years, we have 11.8% nominal and 7.8% adjusted for inflation, including dividends.”
Watch the exact part of the video where Adria talks about the S&P 500 here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on the S&P 500 (SPY) at the following link. SPY stock.
