20 Years of Stock Market Returns, by Calendar Year

Here is the article.

I like to learn a few concepts from the article.

Time in the market vs. timing the market
Sequence risk

Historial S&P 500 Index Stock market returns

Year   Percent (%) Return
1986  18.5
1987  5.2
1988  16.8
1989  31.5
1990 -3.1
1991  30.5
1992  7.6
1993  10.1
1994  13
1995  37.6
1996  23.7
1997  33.4
1998  28.6
1999  21.0
2000  -9.1
2001  -11.9
2002  -22.1
2003  28.7
2004  10.9
2005  4.9
2006 15.8
2007   5.5
2008  -37.0
2009   26.5
2010   15.1
2011     2.1
2012   16.0
2013   32.4
2014   13.7
2015   1.4
2016   11.9

Case study: 2008 recession

Go over an example, 2008 bear market, index dropped 37%, how long does it take to recover?

$1000  2008   loss -37%

$797    2009   26.5%

$917    2010   15.1%

            2011   2.1%

$1080  2012   16%

If there is no more investment from 2009 to 2012, it will take 4 years to recover the loss. 

The uplifting news is this, despite the bad press about the stock market and the risk associated with dipping your financial toes in the ponds of stock investing, America's financial markets produce great wealth for its participants over time. Stay invested for the long-haul, continue to add to your investment, and manage risk appropriately, you will meet your financial goals.