A Glass (More Than) Half Full

History shows that the stock market has rewarded investors, more frequently than not, who can bear the risk of stocks and stay committed through various periods of performance. The graphic below shows the historical distribution of US market returns since 1926, and that the investing glass, was more than half full. The performance years are stacked in order of return range. The graphic highlights that, over time, the market’s positive return years have outnumbered the negative return years, with positive performance more concentrated in the higher ranges of returns.

Distribution of U.S. Stock Market Returns
Center for Research in Security Prices, University of Chicago, (CRSP) 1–10 Index returns by year, 1926–2013

Full size, printable PDF, Distribution of U.S. Stock Market Returns

CRSP data provided by the Center for Research in Security Prices, University of Chicago. The CRSP 1−10 Index measures the performance of the total US stock market, which it defines as the aggregate capitalization of all securities listed on the NYSE, AMEX, and NASDAQ exchanges. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. © Rogowski Wealth Management, 2014