A look back at market history shows that the U.S. stock market, represented here by Standard & Poor’s 500 Composite Index, demonstrated strength after big declines. Even after three steep drops, the S&P 500 still provided an average 10-year annualized return of nearly 11% as of December 31, 2012. However, it’s important to note that past results aren’t predictive of the future.
Source: Thomson InvestmentView. Years shown are the end dates of the preceding 10-year period. Results are calculated on a monthly basis. The index is unmanaged and, therefore, has no expenses.