When investors hear that stocks have averaged an annual return of 10.2% since 1926, they may mistakenly believe that stocks will return 10% most years. In reality, stocks have only returned between 8 and 12% in six calendar years since 1926.
S&P 500 Index Annual Total Returns (1926 – 2019)
| Painful | Challenging | Good | Exceptional | ||||||||
| >-20% | -16 to -20% | -12 to -16% | -8 to -12% | -4 to -8% | 0 to -4% | 0 to 4% | 4 to 8% | 8 to 12% | 12 to 16% | 16 to 20% | >20% |
| 1930 -24.89 | N/A | 1973 -14.68 | 1929 -8.41 | 1977 -7.15 | 1934 -1.44 | 1960 0.46 | 1947 5.70 | 1926 11.62 | 1965 12.45 | 1944 19.75 | 1927 37.48 |
| 1931 -43.33 | 1932 -8.19 | 1981 -4.92 | 1939 -0.41 | 1970 3.85 | 1948 5.50 | 1959 11.95 | 1971 14.30 | 1949 18.79 | 1928 43.60 | ||
| 1937 -35.02 | 1940 -9.78 | 2018 -4.38 | 1953 -0.98 | 1994 1.32 | 1956 6.55 | 1968 11.06 | 2006 15.79 | 1952 18.36 | 1933 53.99 | ||
| 1974 -26.46 | 1941 -11.59 | 1990 -3.10 | 2011 2.11 | 1978 6.57 | 1993 10.07 | 2010 15.06 | 1964 16.48 | 1935 47.66 | |||
| 2002 -22.10 | 1946 -8.07 | 2015 1.38 | 1984 6.27 | 2004 10.88 | 2014 13.68 | 1972 18.99 | 1936 33.92 | ||||
| 2008 -36.99 | 1957 -10.78 | 1987 5.25 | 2016 11.95 | 1979 18.60 | 1938 31.12 | ||||||
| 1962 -8.72 | 1992 7.61 | 1986 18.66 | 1942 20.34 | ||||||||
| 1966 -10.06 | 2005 4.91 | 1988 16.60 | 1943 25.89 | ||||||||
| 1969 -8.50 | 2007 5.49 | 2012 16.00 | 1945 36.43 | ||||||||
| 2000 -9.10 | 1950 31.71 | ||||||||||
| 2001 -11.88 | 1951 24.01 | ||||||||||
| 1954 52.62 | |||||||||||
| Past performance does not guarantee future results. The performance shown above is index performance. Investors cannot directly invest in an index. Bottom line: The high returns that stocks have delivered come with significant volatility—but this has been worthwhile for long-term investors. |
*8% to 12% gain 1926 11.62 1959 11.95 1968 11.06 1993 10.07 2004 10.88 2016 11.95 |
1955 31.56 | |||||||||
| 1958 43.36 | |||||||||||
| 1961 26.88 | |||||||||||
| 1963 22.80 | |||||||||||
| 1967 23.97 | |||||||||||
| 1975 37.22 | |||||||||||
| 1976 23.92 | |||||||||||
| 1980 32.50 | |||||||||||
| 1982 21.54 | |||||||||||
| 1983 22.55 | |||||||||||
| 1985 31.72 | |||||||||||
| 1989 31.68 | |||||||||||
| 1991 30.46 | |||||||||||
| 1995 37.57 | |||||||||||
| 1996 22.96 | |||||||||||
| 1997 33.36 | |||||||||||
| 1998 28.57 | |||||||||||
| 1999 21.04 | |||||||||||
| 2003 28.68 | |||||||||||
| 2009 26.46 | |||||||||||
| 2013 32.38 | |||||||||||
| 2017 21.83 | |||||||||||
| 2019 31.48 | |||||||||||
Your financial professional can help you stay focused on your long-term goals when you feel impatient with the stock market.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. Returns for the S&P 500 Index from 1926 to 1969 are calculated by Ibbotson and is represented by the SBBI US Large Stock Index. Returns from 1970 to 2019 are for the S&P 500 Index.
Important Risks: Investing involves risk, including the possible loss of principal.
CCWP091 219124