S&P 500 Historical Returns 1950-2008

Please look below for the list of historical returns for S&P 500 Index










As you can see above, returns for the index varied significantly each decade. Look at your right to see more in depth analysis of the returns.
S&P 500 index has been published since 1957, which is the weighted index of the 500 large-cap common stocks. Although the official data is only available from year 1957, we can still calculate the Historical return for s&P 500 index from earlier years by taking the very same companies. This exact thing has been done on the below graph which is the calculation starting from year 1926.

The average return since 1950 was 10.8%, but if the inflation is subtracted then the real total return is 6.8%. However, this by any means does not guarantee that this is the percentage you will earn. Calculating the expected return will give you a better estimate, but even then it does guarantee anything. To show you an illustration, if we were to compute the expected return over the past three year period with 10% return for each year, then the average return would be 10%. (10%+10%+10%)/3 = 10%.

But if we were to calculate the expected return for next year and if we knew this information:
Probability of a Boom = 0.2, Return if occurs = 15%
Probability of a Recession = 0.2, Return if Occurs = 0%
Probability of an average stage = 0.6, Return if occurs = 10%
The the expected S&P 500 index return for next year would be, (0.2*15)+(0.2*0)+(0.6*10) = 8%

Historical Returns for S&P 500

Below is the graph of S&P 500 returns which I have gotten from the site www.simplestockinvesting.com










From the chart above, it can be seen that the total average return from 1950 till 2008 was 10.76%. This percentage takes into consideration dividends plus the capital gain (price change).
But if the returns are adjusted for inflation then we get an average total return of 6.76%
Not too bad of an index to have. Because most of the stock analysts can never even beat the S&P 500 index over the long run. However, everything depends on your risk aversion. I would prefer just holding small cap value stocks index. Below you can get into more detailed historical return for S&P 500 index


S&P 500 is the index of the prices of the 500 large-cap common stock companies actively traded in the United States. This index has been followed since 1957. This index is the second most followed index after Dow Jones Industrial Average. Below I will present several tables in which you will be able to see the historical returns for S&P 500 Index

Historical returns for S&P 500 since 1926
















Here is a more recent table of historical returns for S&P 500 since 1988


























Historical returns for S&P 500 Index has varied very much over the years. Overall, S&P 500 can serve as a pretty good representation of an overall market. So when speaking of the market index, it can very well be assumed that it is being spoken of the S&P 500 index.

The S&P 500 index has been quite volatile over the years however it usually averages on a pretty good return. 2009 turned out to be a good year for the index and it earned a surprising 26.45%. And in the past 20 years the average return for S&P 500 has been around 10%.