What are the average annual returns for the US stock market over the past decade?

The average annual return for the US stock market over the past decade (2015-2024) is approximately 11.01%, based on the S&P 500 index. This historical average indicates that, while past performance is not a guarantee of future results, the US stock market has shown a general upward trend over the past decade. 1. **S&P 500 Index Returns**: The S&P 500 index, which represents a broad segment of the US stock market, has an average annual return of 8.55% since its inception in 1928. However, when considering the past decade, the average annual return increases to 11.01%. 2. **Variation and Volatility**: It's important to note that annual returns can vary significantly from year to year. For example, the 10-year return factors in the post-pandemic surge and the 2023 recovery. The 20-year return includes the Great Recession, and the 30-year return includes the dot-com crash of the early 2000s. 3. **Inflation Impact**: Investors should also consider the impact of inflation on the purchasing power of their returns. Adjusting for inflation, the real average annual return drops to about 6.69%. 4. **Market Performance**: The US stock market has shown resilience, with positive returns in 70% of the years since its inception. However, there have been periods of significant volatility and downturns, such as the Great Depression of the 1930s and the dot-com bust and Great Recession of the 2000s. In summary, while the average annual return for the US stock market over the past decade is approximately 11.01%, investors should be aware of the variability and volatility of returns, as well as the impact of inflation on the real return.