By: Ross Bramwell
Going back over the last 93 years the average return of the S&P 500 has been 11.9%. However, the annual total return has only ever fallen inside of a range of +/- 2% of the average (10-14%) eight times. With the Fed still trying to “normalize” interest rates, ongoing trade tensions between the U.S. and China, and the 2020 Presidential Election already appearing to ramp up, we believe it’s important for investors to remember that there will always be bumps along the road of investing. We believe the best path along that road is to create and follow a financial plan that can allow investors to keep perspective during those inevitable bumps, and to take advantage of opportunities as they present themselves over time.
*The S&P index returns start in 1926 when the index was first composed of 90 companies. The name of the index at that time was the Composite Index or S&P 90. In 1957 the index expanded to include the 500 components we now have today. The returns include both price returns and re-invested dividends. Data as of December 31, 2018.
Past performance is not a guarantee or indicator of future results. Inherent in any investment is the potential for loss. This commentary is for informational purposes only and should not be considered legal, tax, accounting or investment advice. Views and opinions expressed herein are as of the date posted unless indicated otherwise, with no obligation to update. Certain of the information herein has been obtained from third party sources believed to be reliable, but has not been independently verified. Discussions pertaining to potential future events and their impact on the markets are based on current expectations and analysis. Actual results may vary.