The SP 500’s Average, Annual Return: Time for Reflection

  • Source: Ycharts performance calculator
  • All returns as of 11/30/21

The above table was prepared for a client dinner last night and the results surprised me.

The 21-year return for the SP 500 of 7.34% is consistent with long-run return on stocks, but note the last 5 – 10 years and then note the returns off the lows of March 9. 2009.

This data shocked me.

In personal emails to clients, the concept of “uncorrelated assets” is being discussed. Owning assets like gold (GLD) again, which is of November 30 ’21 had a 10-year return of -0.69% is now part of every client discussion. From 2000 to 2011, the year gold peaked, the GLD returned roughly 18% a year, but that’s a little misleading too, since the GLD ETF wasn’t created until 2005.

This blog will have a longer article on the topic before year-end 2021.

The “SP 500 earnings update” this weekend won’t be out until later Saturday or Sunday morning.

Thanks for reading, and take everything you read with a healthy dose of skepticism.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.