The Pyramid of S&P 500 Calendar Year Returns
What were the best and worst years to have been invested in the S&P 500 (Index: SPX)?
Visual Capitalist’s Dorothy Neufeld has answered that question using calendar year investment return data from 1874 through 2024. Although she calls it the “Pyramid of S&P 500 Returns”, it’s really a bell-shaped histogram chart.
Although this pattern is “bell-shaped”, stock market returns are not well described by the kind of normal distribution often used in statistical analysis. Vance Harwood offers an excellent discussion demonstrating how the S&P 500 returns don’t fit the standard bell curve distribution, in which he settles on using a Laplace distribution (also known as a double exponential distribution) to better model historic returns. Meanwhile, others find a Lévy stable distribution works better for modeling the extremes in the index’ historic returns.
Previously, we found the average annualized return of investments in the S&P 500 starting in any month from January 1871 to the present and extending over all possible holding periods within this period from one month through 130 years in duration is about 9.4%.
Reference
Dorothy Neufield. Charted: The Pyramid of S&P 500 Returns (1874-2024). Visual Capitalist. [Online article]. 3 January 2025.
Vance Harwood. Predicting Stock Market Returns—Lose the Normal and Switch to Laplace. Six Figure Investing. [Online article]. 9 November 2024.
James Houghton and Kristin Osika. Application of Lévy stable distributions to stock market returns using econophysics. Parabola, Volume 59, Issue 1 (2023). [PDF document]. February 2024.
Source: https://politicalcalculations.blogspot.com/2025/04/the-pyramid-of-s-500-calendar-year.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Online: | |
| Visits: | 1,692,025,512 |
| Stories: | 8,404,443 |
Whistler Blowers, Insiders
