fairly sure I just asserted 2-3 doubling cycles in 40 years. that is sub 7%.
SP500 is also at 5740, not 6150 - or 7% less than peak.
BUT
It is also only 130pts less than it was on 1/1/2025 - down 2%, we can handle 2% down over 40ish trading days?
With most of it coming yesterday!
Assuming this calc is correct -
https://www.buyupside.com/calculators/annualizedreturn.htm
Looking at number from 5 years ago then 2972 3/6/2020. 5740 - 3/6/2025,
is 14% per annum - high from a market average perspective - but is 5 years a reliable average?
Really high if working with the peak of 6150.
But we can avoid that short term, irrational exuberance.
3/6/2015 - 2071, or 11% per annum for 10 year - more reasonable
I got in around 1990ish, think it was around 600 - comes out around 7% over 35 years - which means it doubles every 10 years (rule of 72).
this does not include the 1.5%ish dividend that the sp500 throws off. That is not in the averages.
Don't let the size of the numbers mess with ya. It is geometric, not linear.
Use a log-linear (log of price, linear time) to get a better feel for the growth rate.
What do your moving averages say?
why is it so volatile?
Simple answer: Uncertainty. The cost of risk.
sp500 log-linear - seems like a trend? i'm good with that.
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I'll do another post on protection of principal in the retirement thread.