section_path: Annual stock market growth
section_name: Annual stock market growth
paragraph_text: Annual stock market growth
  
  The average annual growth rate of the stock market, as measured by the S&P 500 index, has historically been around 10%. This figure represents the long-term average return and is often cited as a benchmark for assessing the performance of the stock market as a whole.
  
  The market's results from one year to the next may vary substantially from the long-term average. For instance, in 2012–2021, the S&P 500 index had an average annual return of 14.8%. However, individual annual returns can fluctuate widely, with some years experiencing negative growth and others seeing substantial gains.
  
  While the average stock market return is around 10% per year, there is also the impact of inflation, resulting in investors' losing purchasing power of 2% to 3% every year due to it, which reduces the real rate of return on investments.