The U.S. stock market delivers a hefty long-term average return of 11% per annum.

Peter Prince

2017-03-09 05:32:00 Thu ET

From 1927 to 2017, the U.S. stock market has delivered a hefty average return of about 11% per annum. The U.S. average stock market return is high in stark contrast to the average returns on bonds, currencies, mutual funds, exchange funds, warrants, and commodities such as gold, silver, oil, and wheat. 

Behavioral economists such as Nobel Laureate Richard Thaler have coined this macrofinancial anomaly *the equity premium puzzle*.

This equity premium puzzle suggests that the U.S. double-digit performance is too high to reasonably reflect the typical investor's relative risk aversion in light of low consumption growth.

While many scholars strive to resolve this equity premium puzzle with complex math models, some recent evidence suggests that the American stock market experience proves to be the exception that defies the rule of thumb.

In other words, the American stock market stands out of the international crowd in terms of long-term average aggregate performance.

Positive U.S. investor sentiment highlights the long-term outperformance of the U.S. stock market relative to many other asset classes.

U.S. stocks remain the primary investment vehicle for most global institutional investors and North American retail investors.

Information technology usage, diffusion, and proliferation have spurred the U.S. spectacular stock market vibrancy over the past few decades.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

The recent British pound depreciation is a big Brexit barometer.

Apple Boston

2019-08-20 07:33:00 Tuesday ET

The recent British pound depreciation is a big Brexit barometer.

The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis

+See More

Uber's autonomous car causes the first known pedestrian fatality from a driverless vehicle.

Daphne Basel

2018-03-19 10:37:00 Monday ET

Uber's autonomous car causes the first known pedestrian fatality from a driverless vehicle.

Uber's autonomous car causes the first known pedestrian fatality from a driverless vehicle and thus sets off the alarm bell for artificial intelligence.

+See More

Analytic business competitors apply smart data science to support their distinctive capabilities and strategic advantages.

Peter Prince

2020-11-24 09:30:00 Tuesday ET

Analytic business competitors apply smart data science to support their distinctive capabilities and strategic advantages.

Many analytic business competitors can apply smart data science to support their distinctive capabilities and strategic advantages. Thomas Davenport and

+See More

A physicist derives a mathematical formula for success.

Chanel Holden

2019-03-07 12:39:00 Thursday ET

A physicist derives a mathematical formula for success.

A physicist derives a mathematical formula that success equates the product of both personal quality and the potential value of a random idea. As a Northeas

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market topics and economic trends for better stock investment decisions.

Amy Hamilton

2019-08-31 14:39:00 Saturday ET

AYA finbuzz podcast offers fresh insights into the latest stock market topics and economic trends for better stock investment decisions.

AYA Analytica finbuzz podcast channel on YouTube August 2019 In this podcast, we discuss several topical issues as of August 2019: (1) Warren B

+See More

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy.

Dan Rochefort

2019-01-02 06:28:00 Wednesday ET

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy.

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to

+See More