Here are the annual returns from the S&P 500 over the past 10 years. Each is calculated as the difference between the last trading day of the previous year and the last trading day of that year: https://www.macrotrends.net/2526/sp-500 ... al-returnsThe returns for the fund linked seem to be 25-26%...how is that even possible? I thought the S&P averaged 8-9% per year? (that's more or less the same as the FA or better)
2023: +24%
2022: -19%
2021: +27%
2020: +16%
2019: +29%
2018: -6%
2017: +19%
2016: +10%
2015: -1%
2014: +11%
2013: +30%
(This is the return excluding dividends and not accounting for taxes.)
I think people vastly underestimate the returns of the S&P 500 and the volatility: it could just as well be -30% next year. And over a few days, you might see 20% of your portfolio's value disappear. The obvious takeaway is that you actually need to stay invested in order to realize the cumulative returns... people who sell after a 20% crash "because it will drop further!" and then buy back only once the panic is over (and prices have recovered) are doing much worse.
Statistics: Posted by HKexpat — Sat Oct 12, 2024 12:08 am — Replies 130 — Views 32927