U.S. Stock Performance Over 50 Years
How well have US stocks performed?
With another decade in the books, here’s the quick compounded annual return of the S&P 500 for 50 years:
- Last 10 years: -2.9%
- Last 20 years: 6.1%
- Last 30 years: 8.3%
- Last 40 years: 6.5%
- Last 50 years: 6.2%
Here’s the compounded annual return of the Dow Jones Industrial Average for 50 years:
- Last 10 years: -0.5%
- Last 20 years: 7.0%
- Last 30 years: 9.0%
- Last 40 years: 6.7%
- Last 50 years: 5.8%
And finally, the compounded annual return of the Nasdaq Composite over 30 years:
- Last 10 years: -5.7%
- Last 20 years: 8.4%
- Last 30 years: 9.5%
People used to say that stocks generate about 8%+ annual returns over the long-run. It seems fairer now to say that stocks generate 6%+ annualized returns over the long-run. That type of return doesn’t blow my mind given inflation and capital gains tax though it’s still better than a lot of things. I also have to think that the next 10 years will be better than the last 10 years.
Thinking About Thinking 
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[…] My numbers are based on the 50 year DOW return of 5.8%, of course the S&P did better. https://larrycheng.com/2010/01/01/u-s-stock-performance-over-50-years/ […]
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have you updated this 50-year chart through 2013? If so, where can I find it?
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