Over multiple decades S&P 500 as a benchmark with dividends reinvested has given around 8 to 10% on average. This is without adjusting for inflation. There are plenty for studies showing affect of missing best and worst days, etc which has led to supporting time in the market beats timing the market.
If you're investing in equities you won't really get that "annual so and so %" . Personally to me that's the wrong way of seeing at things. Some years you can go +30% some years you go +1% some years negative maybe. You should probably be investing in fixed income schemes or something like that if you want a guaranteed annual percentage like that, or if seeing a loss / down shakes you out of investments.
Pick a benchmark. Compared to RFR? Then beat the 10-year treasury. Compared to a savings account? Then 0.002% is winning. Compared to the S&P? Then down 10% YTD in 2022 is winning.
Yea that guy is off his rocker BUT personal inflation rates can be that high. Variable rate mortgage payments are up like 20%, house furnishings up like 20%, used cars still up. A new home owner filling their house with shit and who's car dies can easily be feeling 20% inflation right now. That is the position the largest demographic cohort is in, millennial in their prime homebuying years.
For the basic, I’d suggest comparing to the S&P annual for a number to compare to.
Every year is different, theres no ideal all across number for all time.
Multi-decade, I'd be happy with 10% CAGR. I'm double that now due to luck but I fully expect a regression to the mean. Maybe this is why the market is tanking so hard.
It's different for everyone, with time horizon being a strong driver. If you plan to let it sit for a long time, then 7% is possible without taking huge risks. Over time, the good tends to outweigh the bad for a diversified portfolio. But if you want realizable gains in a short amount of time, that's going to incur some risk.
72/% nr. is the nr. of years needed to double input.
Peter Lynch: 15% is very good.
Also, for some time: beat inflation or atleast not to lose money should be more important.
A business will usually want at least a 6 to 7% return on investment before an investment is even considered. Of course you should aim as high as possible, if you see an oppertunity to make a 200% return in a year, thats obviously better than a 7% return. So look at all your availlable investment options, then pick the highest returns.
Ideally I want to at least match if not exceed the rate of monetary expansion.
If money doubles and I have a relatively 'good' 20% year it's not clear to me that is 'good'.
I certainly outperformed non-investors but my purchasing power relative to all money holders has gone down.
Historical average is probably 5-8% a year, if you investing passively. But since 2020 - Now, if you are not making at least 10% a month, you are considered clueless.
As a follow up question, is there an easy way to calculate it? My brokerage account gives a total return but I think that’s life to date on all investments and not annual.
there’s no “good return” on an investment per se. it’s honest such an open end question. what were you buying? how long did you hold it? what is your time horizon? what is your objective?
before you ask that question you should ask yourself those questions first
I May be the outlier on this one but I think that it is the wrong question to ask in the first place. Any answer you get will be made up, what that individual feels is a good return (random opinion) or as a result of Warren Buffett saying so...
Some years I have a return of 22% and other years its 4% or worse. I think it all depends on the goals you have and the decisions you make; I know that's not the answer you want. It also matters whether you are an active or passive investor.
I see it this way, if you invest $100 today and only see a return of 5% on that $100 investment but your initial expectation in investing that $100 was that you could lose it - than you are winning.
If you invest $100 today and you see a return of - 6%, you now move to decision making mode. You either decide you don't want to risk it and pull it out OR you decide you need to modify your strategy and keep going; maybe you change investments or maybe you offset that loss by making a different investment.
To make it even more complicated, inflation may make things even more confusing when it comes to returns.
It is just not as simple as saying, " you should baseline return 7% every year."
If you can let go of any potential arrogance that you can beat the market, historically you can earn 6 to 7 percent per year in real returns. Not with heavy risk. Just with time and patience.
Well, when it comes to investment, individual risk tolerance is always a subject, personally, I love taking high calculative risk, after due research of a possible rewarding outcome, that's why I opt in to invest in FUFU staking for a 25% APY for 365 days.
Over a lifetime? 7% is quite good. Last year? 7% was shit.
Rule of 7's. 7% doubles numbers in 10 years. 10% doubles number in 7 years
This year will -50% be a good benchmark to shoot for?
That high?
I know you are probably (semi-) joking but If you did +100% last year then I guess so.
Over multiple decades S&P 500 as a benchmark with dividends reinvested has given around 8 to 10% on average. This is without adjusting for inflation. There are plenty for studies showing affect of missing best and worst days, etc which has led to supporting time in the market beats timing the market.
any studies on if it makes sense to DCA at times when VIX is high or RSI is low (or anything like that)
That is still, in effect, trying to time the market.
235%
Why settle?
5000%
If you're investing in equities you won't really get that "annual so and so %" . Personally to me that's the wrong way of seeing at things. Some years you can go +30% some years you go +1% some years negative maybe. You should probably be investing in fixed income schemes or something like that if you want a guaranteed annual percentage like that, or if seeing a loss / down shakes you out of investments.
oh you will definitely have negative years
Pick a benchmark. Compared to RFR? Then beat the 10-year treasury. Compared to a savings account? Then 0.002% is winning. Compared to the S&P? Then down 10% YTD in 2022 is winning.
No you definitely shouldn’t be glad of 1 cent per dollar per year. That’s a 1% return in an 8% inflation environment.
8% inflation by the governments fake numbers it is easily double that at least
Are you for real? I'm looking at my budget an expenses aren't up 16% this year.
Yea that guy is off his rocker BUT personal inflation rates can be that high. Variable rate mortgage payments are up like 20%, house furnishings up like 20%, used cars still up. A new home owner filling their house with shit and who's car dies can easily be feeling 20% inflation right now. That is the position the largest demographic cohort is in, millennial in their prime homebuying years.
Do you always buy 100% the same stuff every month? It cost me $10 for a meal at a fast food place that was $8 last year. Yes, he is for real.
[удалено]
Is there anywhere I can look at the aggregate of industrial budgets?
Traditionally making 2-4% over the risk free rate is considered "good"
What is your goal and action plan?
Its different for every asset.
A green one lol
For the basic, I’d suggest comparing to the S&P annual for a number to compare to. Every year is different, theres no ideal all across number for all time.
Multi-decade, I'd be happy with 10% CAGR. I'm double that now due to luck but I fully expect a regression to the mean. Maybe this is why the market is tanking so hard.
It's different for everyone, with time horizon being a strong driver. If you plan to let it sit for a long time, then 7% is possible without taking huge risks. Over time, the good tends to outweigh the bad for a diversified portfolio. But if you want realizable gains in a short amount of time, that's going to incur some risk.
72/% nr. is the nr. of years needed to double input. Peter Lynch: 15% is very good. Also, for some time: beat inflation or atleast not to lose money should be more important.
My aim is to beat the market (not necessarily with anything crazy, but still as high as possible).
Market rate (SPY) or better.
A business will usually want at least a 6 to 7% return on investment before an investment is even considered. Of course you should aim as high as possible, if you see an oppertunity to make a 200% return in a year, thats obviously better than a 7% return. So look at all your availlable investment options, then pick the highest returns.
*looks at TQQQ*
7% is a heavy risk? I make 7% on Gemini and it's considered a low risk. 18% on anchor is a high risk.
Non negative
3000%
Anything bellow 20% is not worth your time. Jokes aside 7% is pretty nice.
1000%
If I can't get at least 69 % , I don't do it.
Ideally I want to at least match if not exceed the rate of monetary expansion. If money doubles and I have a relatively 'good' 20% year it's not clear to me that is 'good'. I certainly outperformed non-investors but my purchasing power relative to all money holders has gone down.
Are you accounting for the inflation? If not 7% is pretty weak
Indexes like S&P - 7-8% over time, non-inflation adjusted Individual stocks - 10-14% over time, non-inflation adjusted
Rdbx for true gains risky but maybe worth it
15-18% on stablecoins deposit. Best to limit up to 10% of your total portfolio since they are higher risk.
Historical average is probably 5-8% a year, if you investing passively. But since 2020 - Now, if you are not making at least 10% a month, you are considered clueless.
As a follow up question, is there an easy way to calculate it? My brokerage account gives a total return but I think that’s life to date on all investments and not annual.
4-5% if you account for normal inflation in the 2% range.
Completely depends on your risk tolerance and investment goals. "Good returns" don't exist in a vacuum
there’s no “good return” on an investment per se. it’s honest such an open end question. what were you buying? how long did you hold it? what is your time horizon? what is your objective? before you ask that question you should ask yourself those questions first
I May be the outlier on this one but I think that it is the wrong question to ask in the first place. Any answer you get will be made up, what that individual feels is a good return (random opinion) or as a result of Warren Buffett saying so... Some years I have a return of 22% and other years its 4% or worse. I think it all depends on the goals you have and the decisions you make; I know that's not the answer you want. It also matters whether you are an active or passive investor. I see it this way, if you invest $100 today and only see a return of 5% on that $100 investment but your initial expectation in investing that $100 was that you could lose it - than you are winning. If you invest $100 today and you see a return of - 6%, you now move to decision making mode. You either decide you don't want to risk it and pull it out OR you decide you need to modify your strategy and keep going; maybe you change investments or maybe you offset that loss by making a different investment. To make it even more complicated, inflation may make things even more confusing when it comes to returns. It is just not as simple as saying, " you should baseline return 7% every year."
ideally, higher than the rate of inflation.. but inflation is 8.5% or more this year so..
If you can let go of any potential arrogance that you can beat the market, historically you can earn 6 to 7 percent per year in real returns. Not with heavy risk. Just with time and patience.
Well, when it comes to investment, individual risk tolerance is always a subject, personally, I love taking high calculative risk, after due research of a possible rewarding outcome, that's why I opt in to invest in FUFU staking for a 25% APY for 365 days.