Don't Expect 'Average' Returns 😬 📊

Do You Have the Guts for the Stock Market?

They say the average annual return of the market is typically between 7% - 10%.

So as investors, that's the return we should typically expect, right?

Well, no.

While the market average is typically 7% to 10%, there is a wide standard deviation, meaning that most years the market does not have a return within that average range.

In fact, it's just as common for the market to return 0% to -10% as it is for it to return 0% to 10%.

And it's actually much more common for the market to have returns of 10% to 30% than the average.

And this is why most people can't handle investing.

It can be emotional-

If you let it.

Having a year where you are up 30%, followed by a year where you are down 30% can be quite the emotional rollercoaster.

This causes people to jump in and out of the market at random times.

And the data tells us historically speaking that investors are quite bad at trying to time the market.

So what does this mean for us?

Don't expect the average over short periods of time.

In the last 2 years, this has been $SPY results:

S&P 500 in 2022: -19.64%

S&P 500 in 2023: 24.20%

But if you have the guts to hold long term...

Then you can take part in the greatest wealth building tool of all time and achieve great results.

---

Other news…🔥

At the end of every month, I send out a newsletter to my paid newsletter subscribers with a list/spreadsheet of all the dividend stocks that I believe to be currently undervalued.

This sheet was received by nearly 200 dividend investors last month. (Wow!)

If you’d like to receive this sheet at the end of this month, you can sign up here:

---

That’s all for now! Feel free to respond to this email and let me know of any thoughts you have!

See you next week!

Dividendology