The multi year gain tabulates rolling year gains. So for example the 2013 5 year total gain of 42% is the return from 2009 to 2013.
We really don’t have data earlier than 1970. it would be better.
There are a few realizations
- if you look at the 10 year returns there are many rolling 10 year returns where the returns are less than 4%
- 20 year rolling returns look rather respectable except 2008
- seems for the past 10 years it’s a new paradigm
- if you have the holding power more than 15 years, statistical historical data shows favorable chances you will not lose money. Doesn’t mean you wont lose out to inflation
- amazing that prior to 2000. there isn’t a lot of negative 1 years
- on a 5 year basis, there are many years that you will still end up negative
Update: Thanks to reader Momo highlighting a better index to take note of the MSCI AC World Index. I have append the 25 year result below: