From the course: Understanding Capital Markets

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Returns in the stock market

Returns in the stock market

From the course: Understanding Capital Markets

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Returns in the stock market

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- [Instructor] If you're going to invest in stocks, you'll want to know what to expect in terms of returns, right? So, let's take a look at where you can get some more information to help you out. Now, I'm here at one of the NYU Stern School of Business web pages that they have, where they show annual returns on stocks, T-bonds and T-bills for the period 1928 through present. And they've pulled a lot of this data from the Federal Reserve, and specifically, the Federal Reserve Database in St Louis, or FRED. So, we know that the information is valid. There's no question about the authenticity. Now, if we just kind of eyeball the data, what this is showing us is the returns for the S&P 500, which is a good proxy for the overall stock market, for treasury bills, for 10 year treasury bonds, over time. We also see the value of $100 invested in each of these investments in the year 1920 through present. And let's just…

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