By: Sean Williams
The past 10 years and change have really been something special for investors. Both the iconic Dow Jones Industrial Average and broad-based S&P 500 have more than quadrupled in value since their Great Recession closing lows in March 2009, while the tech-heavy Nasdaq Composite has gained in excess of 500%. Not too shabby, considering that the historic average annual return of the stock market is about 7%, inclusive of dividends and when adjusted for inflation.
We’re also in the midst of the longest economic expansion on record in the modern era (which dates back about 160 years). This past July we hit our 10th year of economic expansion, surpassing the 120 months that ended when the dot-com bubble burst.