How Long Does It Take To Be A Long-Term Investor?
According to Craig Israelsen, Ph.D., an academic whose research we license, over the last 93 years, the four major asset classes — stocks in large and small companies, 10-year U.S. Treasury bonds, and 90-day Treasury bills — through the end of 2018 offered returns and risk levels as shown.
The period encompasses all of modern Wall Street history, some of the best statistics for understanding investing. Owning stock in large U.S. companies averaged a 9.99% return nominally, which is economic-speak for saying "before adjusting for inflation."
The longer you hold your investments — the longer your horizon, your holding period — the more likely you were to achieve a long-run return.
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