Market View: Reduction of Risk Over Time

This chart shows the range of U.S. equity returns, as represented by the S&P 500 Index, for various time periods since 1926. Investing in the S&P 500 Index for a one-year period varies from a 163 percent gain (July 1932 to June 1933) to a 68 percent loss (July 1931 to June 1932). However, the range of annualized returns is narrower for longer rolling time periods. Holding the same investment for 20 years returned as much as 18 percent per year (April 1981 to March 2000) and never less than 1.89 percent (September 1930 to August 1949).

Sign up to receive charts like this in your inbox.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.