S&P 500 Rolling 15 Year Annualized Returns
Reversion to the mean is one of the strongest forces in finance. The mean post WWII 15 year rolling return has averaged 7% annually. Despite the impressive run from 2009, the S&P 500 is still well below the mean on this measure.
If by 2020 we get back to the mean 15 year annualized return, the S&P 500 would be above 3400 (or an average annual gain of 11% from today).
Bear markets can happen, but investors should not let short term concerns keep them from investing for their long term goals. Equities remain one of the most compelling asset classes for long term investing.
S&P 500 Index is a widely recognized index of market activity based on the aggregate performance of a selected portfolio of publicly traded common stocks. The index return has been computed without reinvestment of dividends, does not reflect the impact of management fees or trading costs. The index is unmanaged and is not available for direct investment.
This publication has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Past performance does not provide any guarantee of future performance, and one should not rely on performance as an indication of future performance. Commentary may contain subjective judgements and assumptions subject to change without notice. There can be no assurance that developments will transpire as forecast. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of Todd Asset Management LLC. © 2017