Latest Market History Report

We have updated our Market History Report to include the investment returns of 2024.

Here is the latest table showing the average annual returns over different time periods:

The past few years have not been kind to the bond market due to higher inflation.  Poor returns in 2022 were significant enough that it dragged down the average bond return for the past 5, 10, 15 and 20 years.  Here are annual returns of the past five years:

Turning to cash, we are finally getting a “real” return, which means that the return is higher than the rate of inflation.  This hasn’t happened since the Global Financial Crisis in 2008.  Here is the comparison:

Stocks, as represented by the S&P 500, have been the winner over the long run. The average annual return over the past 96 years is 9.9%. The S&P 500 now represents over 80% of the value of the total US stock market.

The lowest average annual returns for stocks have occurred over the last 25 years at 7.6% per year.  This time period starts with the peak of the dot.com bubble in March 2000.  This 25-year period also includes the 9/11 attacks, a 20-year war in Iraq and Afghanistan, the market meltdown of the 2008 Global Financial Crisis, and the Covid pandemic with its subsequent inflation surge.

Stock prices follow corporate earnings over time and companies have been incredibly resilient through it all.

The full updated report can be found here.  Please let us know if you have any questions or comments.