Talking averages are always tricky when you are talking about lumpy numbers. The average stock market return is the percentage change in the stock market value for one year or a period of years.
The shorter your timeframe, the greater the market volatility investors will face. Daily, prices can gyrate wildly with 24-hour financial news chatter you should ignore.
Measuring Stock Market Returns And Why S&P 500 Matters
A securities market index is an indicator of market performance, measuring the average value of several securities chosen as a sample to reflect how the market is doing.
Measuring Stock Market Returns And Why S&P 500 Matters
The S&P 500 composite index is the most widely accepted benchmark of the stock market returns of experienced investors, analysts, and portfolio managers, but the media tends to focus on the Dow.
You have a better chance of attaining a 10% average stock market return when you take on a long-term view. Warren Buffett said, “I never attempt to make money on the stock market. I buy on the assumption that they close the market the next day and not reopen it for five years.”