Monday, December 6, 2010

14% to 17% Ten Year Annualized Returns

When you look at the 10-year rolling returns for the S&P 500 from 1926 to 2009 you will see that the recoveries following the last major corrections were followed by a 20 year period of 14.86% annualized returns and a 26 year period of 17.19% annualized returns. We do not know what tomorrow may bring, but history shows that optimism for the future is not an unreasonable position.