[mahogany]

I remember 7% being the historic average that all the classic investing books said. I think it's after adjusting for inflation and dividends. How are you calculating 10%?

[waheoo]

7% is adjusted for inflation. 10% is the nominal average. An up year is commonly 10-15% with down years being more severe but less frequent.

[SuoDuanDao]

By my understanding, 7% is average for any given year. Average for a year with positive gains would have to be quite a bit more to balance out even the occasional negative year.