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Chart illustrating the average stock market return for 20 years is 4.1%


Stashed in: Economics!, Math!, Infographics!, Charts, economics, Hacker News!, MIT TR, Investing

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This is one of the greatest charts ever made.

“Market returns are more volatile than most people realize,” Mr. Easterling said, “even over periods as long as 20 years.”

I found this chart from a HackerNews discussion talking about what is the number halfway between 1 and 9: http://news.ycombinator.com/item?id=4626683

Hint: it could be 5 -- or it could be 3. Logarithms are actually more intuitive for many. http://web.mit.edu/newsoffice/2012/thinking-logarithmically-1005.html

Here's the legend:

key.png

There are surprisingly large patches of red on the chart atop the page. 

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