Rolling S&P 500 Returns
Being a United States based investor, we often think in terms of the S&P 500. This visualization is one of the more interesting and informative I have come across but there are some caveats that I want to note:
1. This depicts one of the best performing indices of the modern era and as a result, it is helpful to keep that context.
2. It is my belief that a diversified portfolio provides a better opportunity to acheive financial goals than any single indice can.
3. Your results and investment experience may be completely different over the next 30 years vs. the presented. It is for this reason that we create diversified portfolios with the goal of reducing the cone of possible investment returns.
To read the chart: "Pick a starting year. Then, go down the number of years and the corresponding square will tell you the annualized return from that starting point. For example, the 9-year annual return starting in 1993 was 14% per year." - Ben Carlson of A Wealth of Common Sense
The original Article can be found HERE should you want to read further.
If you would like to discuss how we think about portfolios and the unknown of future returns, schedule an appointment via the link below. I look forward to hearing from you!
The opinions voiced in this material are for general information only and are not intended to provide speciļ¬c advice or recommendations for any individual.
All performance referenced is historical and there is no guarantee of future results. All indices are unmanaged and may not be invested directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.