Plugging this into excel and using simple interest starting with $100 at the beginning of 1926, it turns into $1,710,533 by 2024. An inflation calculator claims that the original $100 is worth $1,777 in today’s money. So still quite a return.
The average return is 10-12%, yeah? In my head that’s what “the market” does and any advisor must beat that after fees. Otherwise I’m throwing it an index fund with low fees and letting it ride.
Does what I said make any sense?
The y-axis should be log scaled. A -40% loss is the opposite of a 66% gain and should have the same size bar. An arithmetic scale visually exaggerates the gains.
And if you dollar cost average, you’re not only buying the highs but you’re buying the lows and its recoveries
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Here is the [source](https://us500.com/tools/returns/sp500-returns-by-year)
The diagram was made using chart.js with react.
Here is the dataset: [link](https://www.slickcharts.com/sp500/returns)
Plugging this into excel and using simple interest starting with $100 at the beginning of 1926, it turns into $1,710,533 by 2024. An inflation calculator claims that the original $100 is worth $1,777 in today’s money. So still quite a return.
The average return is 10-12%, yeah? In my head that’s what “the market” does and any advisor must beat that after fees. Otherwise I’m throwing it an index fund with low fees and letting it ride.
Does what I said make any sense?
The y-axis should be log scaled. A -40% loss is the opposite of a 66% gain and should have the same size bar. An arithmetic scale visually exaggerates the gains.
And if you dollar cost average, you’re not only buying the highs but you’re buying the lows and its recoveries
***Time in the market > Timing the market***