Thursday, January 16, 2014

Double Digit S&P 500 Returns Far More Common Than Single Digit Returns

A recent report by Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, highlighted the fact that double digit calendar year returns for the S&P 500 Index are not that uncommon. As the below chart shows, returns greater than 10% have occurred 51 times out of 88 years since 1926. That is, double digit returns for the S&P 500 Index have occurred 58% of the time since 1926. In 73% of the calendar years (64 years), returns greater than 0% have occurred. Notable is the fact that single digit returns are far less common than double digit returns.

From The Blog of HORAN Capital Advisors

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