Resolved Question Show me another » What is the average rate of return on the stock market?
What kind of interest rate does the stock market offer long-term (30 years)?）
Answer：
It depends on what you mean by “the stock market”
Long term, the S&P 500 (which is essentially an average of the large cap companies in the US stock market) has given about 10% return historically. Economists do not expect that that level of return will continue and something like 6% is more realistic looking forward. It’s not great, but it’s decent.
The Russell indices, which are composed of small cap stocks, tend to perform better long term (15-20%) but have a lot more volatility. And emerging markets indices can go even higher than that, both in return and volatility.
There are mutual funds you can get, which offer differing historical returns. Generally there are low-risk funds that will give you a slow, steady return at a low rate, and high-risk funds that will give you a high rate in the long run but be all over the map day-to-day.
Posted: August 8th, 2010 under US Stock Market.
Tags: Stock market