The Holding Period

Key Long-Term Benchmarks

S&P 500 composite, 1926–2024. Annualized figures.

10.5%
Nominal CAGR
1926–2024
7.0%
Real CAGR
Inflation-adjusted
4.2%
Avg. Dividend Yield
Historical mean
−51%
Maximum Drawdown
2007–2009

Annual Returns by Decade

Total return (price + dividends reinvested), annualized per decade. Source: Robert Shiller data library, Dimensional Fund Advisors.

Decade Price Return (Ann.) Dividend Yield (Avg.) Total Return (Ann.) CPI Inflation (Ann.) Real Total Return
1930s−5.3%+5.8%+0.5%−2.0%+2.5%
1940s+9.2%+5.3%+14.5%−5.6%+8.9%
1950s+13.6%+5.8%+19.4%−2.2%+17.2%
1960s+4.4%+3.4%+7.8%−2.5%+5.3%
1970s+1.6%+4.3%+5.9%−7.4%−1.5%
1980s+12.6%+4.9%+17.5%−5.1%+12.4%
1990s+15.3%+2.9%+18.2%−2.9%+15.3%
2000s−2.7%+1.8%−1.0%−2.6%−3.6%
2010s+11.2%+2.4%+13.6%−1.7%+11.9%
1926–2024 Avg.+6.3%+4.2%+10.5%−3.0%+7.5%

Note: Figures are approximate annualized returns for each decade. Real returns calculated using CPI deflator. Past performance is not indicative of future results.

Rolling Holding Period Analysis

Probability of positive real returns for all rolling periods of given length, 1926–2024. S&P 500 total return index.

Holding Period % Periods Positive (Nominal) % Periods Positive (Real) Best Period Return Worst Period Return Median Annualized Return
1 Year73%64%+53.4%−43.3%+14.8%
3 Years84%74%+33.9%−27.8%+11.4%
5 Years88%79%+28.6%−12.5%+10.8%
10 Years95%85%+20.1%−4.9%+10.3%
15 Years99%91%+18.9%−1.2%+10.1%
20 Years100%96%+17.9%+3.1%+10.7%
30 Years100%100%+14.8%+8.4%+10.9%

Highlighted rows indicate holding periods with no historically negative real return outcome. Data covers all rolling periods within 1926–2024 dataset.

CAPE Ratio at Key Market Turning Points

Shiller Cyclically-Adjusted P/E (CAPE) at major market peaks and troughs. Source: Robert Shiller, Yale University.

Date Market Event CAPE Ratio Subsequent 10-Yr Ann. Return
Sep 1929Market Peak (pre-Crash)32.6−0.1%
Jun 1932Great Depression Trough5.6+13.8%
Jan 1966Post-War Bull Peak24.1+3.6%
Aug 1982Secular Bear Trough6.6+17.5%
Dec 1999Tech Bubble Peak44.2−1.4%
Mar 2009Financial Crisis Trough13.3+18.7%
Jan 2022Post-Pandemic Peak38.3Pending

CAPE = current price divided by the 10-year moving average of real (inflation-adjusted) earnings. Returns shown are annualized S&P 500 total returns for the decade following each date.