Tuesday, January 6, 2015

Top 10 investing years for subsequent 10 year returns since 1965 to date

1988: 18.80% nominal per annum average from the S&P500 12/'88-12/'98
1987: 18.15%
1989: 17.99%
1990: 17.57%
1979: 17.27%
1981: 16.53%
1982: 16.16%
1978: 16.14%
1977: 15.02%
1985: 14.98%

These years have an average total S&P500 market capitalization to GDP (in trillions) ratio of 48.

The ratio at the end of 3Q2014 was 112, which historically produces 10 year returns averaging about 3.24% nominal.