COMPOUND UNANNUALIZED EQUITY RETURNS BY DECADE (1930 – 2019)
Source: Fama and French Three Factor Market Return Series
Decade returns range from a low of -4% to a high of 439%. Negative returns are rare, with only two negative return decades. The Depression-era 1930s and the 2000s with Tech Bubble deflation and the Financial Crisis combined in one ten-year period. After the market declined in the 1930’s, it took another six decades to experience another negative decade. The 2010’s was the fourth best investment return decade following the post-war era 50’s, the Dotcom 90’s, and the Reagan-era 80’s. So, while the 2000’s still may be fresh in some investors’ minds, it took a 1 in 50-year and a 1 in 75-year market decline in the same decade to turn the return negative for the decade.
For most investors, there is little need to try to predict the future based on the constant flow of information and opinion regarding the current investing landscape. Successful investors have a long-term perspective and dedicate a portion of their assets to growth and invest based on long-term return expectations. When this perspective is taken, the largely random and unpredictable stream of yearly events, headlines and subsequent results lose their significance. While there are always plenty of things to worry about, often the best course of action is to stay invested and stick to your plan.
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The information provided here is for general informational purposes only and should not be considered an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. It should not be assumed that recommendations of AthenaInvest made herein or in the future will be profitable or will equal the past performance records of any AthenaInvest investment strategy or product. There can be no assurance that future recommendations will achieve comparable results. The author’s opinions may change, without notice, in reaction to shifting economic, market, business, and other conditions. AthenaInvest disclaims any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any AthenaInvest representative.
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