To some, the stock market seems like a casino. Put some money in, and take a gamble to see if your investments moon or go to zero. But that's not the reality for a large part of the investment world: For those who primarily engage in buy-and-hold, diversified investing — such as pension funds and mutual funds — the market is generally seen as a reliable way to grow long-term wealth.
Sure, there may be some bumps along the way, such as when unexpected events like geopolitical conflicts or natural disasters cause investors to rush for the exits. There can even be prolonged downturns, like when the economy shrinks. But in general, these are detours, not roadblocks. On average, the S&P 500 has returned roughly 10% per year over the long term, even accounting for events like the Great Recession. That's not to say that each particular year is likely to see 10% stock market gains, nor will past returns necessarily continue in the future, but in general, most experts agree that the stock market can reasonably be expected to trend upward in the long run.
