The US equity market has been one of the best performing markets in the world over the long term. The benchmark S&P 500 has grown steadily through various crises and events from 1970 thru 2022. Based on total returns of the index an investment of $10,000 in 1970 would have risen in value to over $2 million or $,2,209,027 as of March end, 2022. The average annual total return of the S&P 500 index during the period shown was 10.88% which is pretty good.

Click to enlarge

^{Source: Bloomberg. Data from 12/31/1969 – 3/31/22. Past performance is no guarantee of future results. This chart is for illustrative purposes only and not indicative of any actual investment. The S&P 500 index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. Stocks are not guaranteed and have been more volatile than the other asset classes. These returns are total returns and were the result of certain market factors and events which may not be repeated in the future}

Source: MARKET PERSPECTIVE CHARTS by Edwin L. “Lee” Peters, III, Peters Financial

The key takeaway is not to focus too much on daily or short-term gyrations of the market and keep an eye on the long term goal of one’s investment in equities.

Related ETFs:

1. SPDR S&P 500 ETF (SPY)
2. iShares Core S&P 500 ETF (IVV)
3. Vanguard S&P 500 ETF (VOO)

Disclosure: No positions

Many countries allow dual citizenship allowing people to take advantage of the best of both worlds. For instance one country may offer excellent job opportunities and earning potential while another country may have better climate or social safety net during retirement. The following infographic shows the countries that allow dual citizenship and other details such as restrictions, if any:

Click to enlarge

Source: Insights Artist

The US equity market is one of the best in the world in terms of returns. In the past 151 years, the US stock market has produced an average return of 8.4% per year. The following chart shows the annual real total returns from 1822 to 2022:

Click to enlarge

Source: U.S. Stock Market Returns – a history from the 1870s to 2022, The Measure of a Plan

While the above chart is interesting, it is better to look at returns on a decade basis. The chart below shows the returns by decade including the price return, total return and real total return which is adjusted for inflation:

Click to enlarge

Source: U.S. Stock Market Returns – a history from the 1870s to 2022, The Measure of a Plan

A few takeaways from the above charts:

• Over the long run equities yield a positive return.
• In most decades stocks beat inflation.
• In the entire period shown above, just during the Global Financial Crisis(GFC) decade, the total return was negative.

Related ETFs:

1. SPDR S&P 500 ETF (SPY)
2. iShares Core S&P 500 ETF (IVV)
3. Vanguard S&P 500 ETF (VOO)
4. SPDR Portfolio S&P 500 ETF (SPLG)

The Complete List of Constituents of the S&P 500 Index can be found here.

Disclosure: No positions