The Real Drivers of 20-Year S&P Returns

In our latest video, DataTrek co-founder Nick Colas reviews the history of 20-year compounded annual S&P 500 returns.

• Over the very long term, US large caps generate low double digit total returns (+11% - +12%/year) but investors rarely see those sorts of annualized gains over periods as long as 20 years.

• Since 1928, the S&P has registered 20-year annual compounded returns as high as +18% or as low as +2%.
  
• As recently as 1999 - 2018, they were just 6%, half the long run average.

These varying outcomes are driven by 1) starting point valuations, 2) economic conditions, and 3) corporate fundamentals. S&P 500 valuations are currently very high, so Nick discusses what it will take for the S&P to generate decent 20-year returns from here.

Watch it here on our YouTube channel! Please hit like/subscribe and share this video if you find it useful. Sign up on datatrekresearch.com to sign up for a 2-week free trial to our daily investment newsletter!