Submitted by lost_girl_2019 t3_zzkmvy in personalfinance
EuronXena t1_j2erqun wrote
Reply to comment by CelticsWin7 in $50 isn't much, but I want to start somewhere. by lost_girl_2019
8% is a lot to bank on…
CelticsWin7 t1_j2etlaj wrote
Not with dividends reinvested. 8% is certainly attainable, especially if you start investing the middle of a bear market.
The average return per year from the very bottom of a bear market to the peak of a bull market is between 15%-19%.
Obviously you can’t time the bottom of a bear market, but you can dollar cost average into it. And eventually the bull market begins and at some point you’ll be up 15%-19% during the bull run (assuming buying at the bottom).
https://www.raymondjames.com/neunuebelbarrantes/pdfs/history-of-market-corrections.pdf
EuronXena t1_j2ets0a wrote
Oh great! So as long as you (time the market) you’ll be set!
CelticsWin7 t1_j2eu4ph wrote
That’s not my point. My point is if you dca into a bear market an 8% return on average per year in a bull market is certainly attainable.
[deleted] t1_j2f87ji wrote
[deleted]
Diligent-Road-6171 t1_j2f3kp6 wrote
It's in line with the 100 year average after inflation.
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