2022 was one of the worst years for stocks in a long time. After a strong start to 2023, stocks are failing to break out at recent highs. What happens the rest of the year remains to be seen. The recent rise in interest rates along with a continued earnings recession is likely to be an overhang that will continue to stall stocks for the final two quarters of 2023.
The average annual return for stocks (S&P 500) over the past 150 years is roughly 9%, including dividends. Without dividends it drops to just over 4.5%. Inflation shaves about half off those returns.
