Double Money in 11 Years?

February 4th, 2010

Historically speaking – YES! If you look at the long run average of the S&P 500 the after-inflation return of the including dividends is about 6.6% a year. Historically, that number has been about 7%, but thanks to recent economy and 2008 losses it’s come down significantly.

So effectively an investor could doubled their money in real terms every 11 years. Of course, that’s an average and the intra-year returns could be wildly different.

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