The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.

Talk to us
Talk to us

Talk to one of our team today

Monday to Friday | 9am - 5pm

If you would like us to contact you, please email us with your details and a convenient time to call you back.
To find out further information on the location of our offices go to Contact us .

Hero image for the 7IM Short Thoughts video series

7IM Short Thoughts: Don’t expect the average market

Ben Kumar, Head of Equity Strategy01 Sep 2023

In certain situations, using averages can sometimes be a helpful way to set and manage expectations – like predicting this weather, for instance.

However, this doesn’t ring true when it comes to investing, as averages just aren’t that common.

Ben reveals all as he takes a closer look at the US stock market.


Here on the northwest coast of Ireland, in county Donegal, there’s an average of 260 days a year where it rains.

Now, that average is a useful statistic. It tells me to pack for rain and then hope that the sun shines. And we’re used to using averages to set our expectations. But it’s a mistake to do the same when we look at investing.

Because, the average return, annual return, of the US stock market over the last 42 years is a nice round 10%. But you shouldn’t expect 10% a year because when you look at the individual yearly returns of the market, you can see that very, very rarely do you get anywhere close to 10%.

In fact, just one time in the last 42 years, in 2016, did you get a 10% return. Because in finance, averages just aren’t that common.

Contact us