As 2023 comes to an end, let’s take a moment to reflect on this year’s stock market returns and put them into perspective within nearly two centuries of market history. Whether you’re new to investing or just looking for a quick update, this overview will help you grasp how the market has performed this year and what history tells us about its long-term potential.
A Look Back at 200 Years of Stock Market Returns
The stock market has been a cornerstone of economic growth, and its historical performance is nothing short of remarkable. Over the last 200 years, the market has delivered an average calendar year return of approximately 9.7%. What’s more encouraging is that it experienced positive annual returns approximately 70% of the time. This track record highlights the potential benefits of staying invested for the long haul, inspiring confidence in the power of the stock market to build wealth over time.
2023: Another Chapter in the Stock Market’s Story
With the new year just around the corner, it’s worth taking a moment to consider the stock market’s climb this year. This year stands out with an impressive surge of over 25% as of December 21, a feat achieved amid the Federal Reserve’s most aggressive monetary tightening cycle in decades. This year’s strong performance serves as a powerful testament to the resilience of the market. It might not be repeated every year, but it underscores a vital investing lesson: staying invested and embracing uncertainty is essential to share in the market’s potential rewards.
Introducing Stocks 500 from Beanstox: Your Gateway to Simple and Effective Investing
As we embrace the spirit of giving this holiday season, Beanstox is excited to present a special gift to both seasoned investors and beginners alike – the launch of Stocks 500. This new product is available for free with Beanstox Simple and is also included in Beanstox Plus. Stocks 500 simplifies investing by focusing on ETFs that aim to track the S&P 500, which includes 500 leading U.S. companies. This approach offers diversification across the 11 sectors of the market, reflecting the S&P 500’s status as a key stock market benchmark. Additionally, Stocks 500 features the convenience of recurring automated deposits. You can choose the amount and set up a regular deposit schedule, making it easy to grow your portfolio over time with a ‘set it and forget it’ approach.
A Message from Kevin O’Leary, Chairman and Co-owner of Beanstox
“As another remarkable year in the stock market ends, I am excited to share with you a special initiative from Beanstox – the Stocks 500 account. This holiday season, it brings me great joy to offer a free product that simplifies and empowers your investment journey. With Stocks 500, we’re removing the barriers to simple and effective investing, making it straightforward and accessible to everyone.”
“Investing is about more than just weathering the ebbs and flows of the market; it’s about embracing the market’s proven long-term potential. At Beanstox, we’re not just committed to helping you invest; we’re dedicated to helping you invest wisely. Our new Stocks 500 account is a cornerstone of this philosophy, enabling you to tap into the vast potential of the S&P 500 with ease and confidence.”
Together, let’s continue to grow, learn, and prosper in the exciting world of investing.
Source:
YCharts. S&P 500 Total Return Index. Year-to-date performance as of 12/21/2023 = 25.65%. Visual Capitalist, Journal of Financial Markets, Slickcharts. The year 1868 has insufficient data to estimate a total annual return.
“Different indexes and data collection methods are used over the stated timeframe. From 1825-1925, numbers come from researchers at Yale University and Pennsylvania State University. They collected price and dividend data for almost all stocks listed on the New York Stock Exchange during its early history.
From 1926-1956, returns are from the S&P 90, the S&P 500’s predecessor. Finally, from 1957 to date, returns are based on the S&P 500.”