Learn The Stock Market And How to Trade

Often you’ll hear numbers thrown around by stock market advisors saying things like “the stock market performance has been 8% a year…” however, this hasn’t always been true, this is only been true for a given slice of stock market history.  It’s interesting to look at stock market performances over different periods of time.

Stock Market Performance Pre WWI (1871-1911): The stock market (S&P) went from 4.44 to 9.27 for a CAGR of only 1.8%

Stock Market Performance WWI to WWII (1912-1944): During this period the stock market only returned 0.7% per year raising to 11.85.  The Great Depression followed by a New Deal government spending it was hard for poor and rich to gain any traction.

Stock Market Performance WWII to Vietnam (1945 – 1965) Here was the first era of serious prosperity with the stock market climbing nearly 10% (9.9%) per year each year.  Imagine the wealth gained by those savers who learned to earn in a time of 1 – 2% returns.  I believe part of it was the beginning of woman moving into the workforce (though most returned after the war until the 1960s and a serious improvement in manufacturing productivity.

Stock Market Performance Vietnam to Desert Storm (1966 – 1991) 5.2% returned a year during this period.  I think it’s interesting to note that this period and after Desert Storm to present are about the same rate of return.  It almost appears the economy is becoming so large, or the face of war has changed so much that the war doesn’t have as much impact on the financial markets.

Stock Market Performance Desert Storm to Present (1992 – 2009) 5.7% returned – again about the same as Vietnam to Desert Storm, though the number would have been a bit better if I would have stopped it at the return to Iraq.

Why did I choose wars as a point to break down eras?  Why not?  You just never know what will pop out at you when you take the time to look at the details and not just muck it all up in one round number.  Why not try the numbers in some way that makes sense to you and tell us all about it?

%RELATEDPOSTS%

Related posts:

1. Stock Market Investing – Your Guide to Success
2. ETF’s in Stock Market Investing
3. Stock Market Growth
4. Stock Market Trading Software – Johnny 5 is Alive
5. Do You Buy Stock Market Claims?