Do Stocks Really Return 8% Yearly? Reality Check

The Myths Of Money: Do Stocks Really Return 8% Yearly?

You’ve probably heard that equity investments return 8% annually – but have you checked if this is true? Let’s look at the performance of the main indices on the 5 largest stock exchanges to find out if this holds true for the last five years.

The largest stock exchanges are New York (NYSE), Nasdaq, Tokyo (TSE), Shanghai (SSE) and HongKong (HKEX). The main indices in each of them are DJI, S&P500, Nasdaq, Nikkei 225, SCI and Hang Seng.

The worst performer was the CSI which grew 13,12%. SSE did 19,36%. But the rest actually went up more than 40% (5×8%).

The US Markets Were On Fire

Kaboom!

The best performer was the Nasdaq with 127,8% (annual 25%). So five years is a short time span, but it’s comforting to know that when it comes to the largest economy (USA), the myth is still true.