Question of the Week

Question:
What has been the [geometric] average return for the stock market over the past 50 years [1970-2020]?

Answer:
10.65%

Questions to think about:

• Do you think that putting your money in a savings account will earn you a higher or lower return than an investment in the stock market? Why?

• Your friend says that the stock market is rigged and most people lose money there. Would you agree or disagree with him?

• Is it fair to assume that the stock market will return about 10% a year in the future? Why or why not?

Source: NYU Data