CAGR of the Stock Market. This calculator lets you find the annualized growth rate of the S&P 500 over the date range you specify; you'll find that the CAGR is usually about a percent or two less than the simple average. Jan 1 to Dec 31. S&P 500 returns (dividends included): Robert Shiller and Yahoo! Finance.
http://moneychimp.com/features/market_cagr.htm
For example, if you had an investment that went up 100% one year and then came down 50% the next, you certainly wouldn't say that you had an average return of 25% = (100% - 50%)/2, because your principal is back where it started: your real annualized gain is zero. In this example, the 25% is the simple average, or arithmetic mean.
http://moneychimp.com/features/market_cagr.htm
Average Stock Market Return per year: Last 5, 10, 20 ... Years. The long-term, more than 100-year performance: Since 1900 (end-of-year 1899), through 2012, I estimate the average total return/year of the DJIA (Dow Jones Industrial Average) was approximately 9.4% -- 4.8% in price appreciation, plus approx 4.6% in dividends.
http://observationsandnotes.blogspot.com/2009/03/average-annual-stock-market-return.html
For example, suppose an investment had returned the following annual returns over a period of five full years: 10%, 15%, 10%, 0% and 5%. To calculate the average return for the investment over this five-year period, the five annual returns would be added together and then divided by five.
http://www.investopedia.com/walkthrough/corporate-finance/4/capital-markets/average-returns.aspx
The S&P 500 gauges the performance of the stocks of the 500 largest, most stable companies in the Stock Exchange. It is often considered the most accurate measure of the stock market as a whole. The current average annual return from 1926, the year of the S&P’s inception, through 2011 is 11.69%. That’s a long look back, and most people aren’t interested in what happened in the market 80 years ago.
https://www.daveramsey.com/blog/the-12-reality/
Past market returns give you a great idea of the volatility to expect when you invest in the stock market. In the table at the bottom of this article, you can see historical stock market returns from 1986 through 2015, listed on a calendar year basis. Negative stock market returns occur, on average, one out of every four years. You will see the positive years far outweigh the negative years.
https://www.thebalance.com/stock-market-returns-by-year-2388543
The 20-year annualized return comes in at 2.5%, while the 30-year annualized rate is just 1.9%. Wow! The average investor exclusively investing in just fixed-income funds has had an even worse experience. The annualized return is 0.6% over 10 years, 0.7% over 20 years, and 0.7% over 30 years.
https://www.forbes.com/sites/advisor/2014/04/24/why-the-average-investors-investment-return-is-so-low/
Since end-of-year 1932 (i.e., after the crash): 11.1% (7.0%, plus 4.2%) The average annual stock market return for the past twenty-five calendar years (since 1987) was 10.6% (7.9%, plus 2.7%) The market was up over 40% before the October 19, Black Monday, crash. After a significant recovery, the Dow actually closed up 6% for the year.
http://observationsandnotes.blogspot.com/2009/03/average-annual-stock-market-return.html
Why The Average Investor's Investment Return Is So Low. According to the latest 2014 release of Dalbar’s Quantitative Analysis of Investor Behavior (QAIB), the average investor in a blend of equities and fixed-income mutual funds has garnered only a 2.6% net annualized rate of return for the 10-year time period ending Dec. 31, 2013.
https://www.forbes.com/sites/advisor/2014/04/24/why-the-average-investors-investment-return-is-so-low/
Likewise, the average return for the total bond market will differ from the average return on U.S. Treasury notes. The time period under consideration also influences average returns. For example, while the stock returned an average of 11.31% from 1928 through 2010, it returned an average of 3.54% from 2001 to 2010. Index investing is a form of passive investing that aims to generate the same rate of return as an underlying market index, no matter how low or how high that return is.
http://www.investopedia.com/walkthrough/corporate-finance/4/capital-markets/average-returns.aspx
average yearly return on stock market
The average yearly return on stock market is 11.69%.