Chart of the Day

Chart of the Day: Returns are Rarely Normal

Today’s Chart of the Day comes from A Wealth of Common Sense showing the range of annual returns over the last 95 years. The long-term average is 10% over the entire period. “Normal returns" between 8% and 12% only occurred five times, which is less than 5% of the time. Don’t despair in the short run, as annual returns are rarely normal. In the long run, since the market was up three out of four years, everything worked out fine.