Mutual Funds/Percentage Increase

Advertisement


Question
Hello:

What is considered a good daily percentage increase for the Dow Jones Industrial Average, Standard and Poors 500, and the NASDAQ stock exchanges?

I thank you for your reply.

Answer
Dear Kenneth--

Over the years, the stock market has returned around 8.5% a year. (The Dow and the S&P 500 pretty much track each other.)

Let's assume that there are 250 trading days in a typical year.

That means that if the stock market were totally stable, it would appreciate 00.034%  a day. (250 X 0.00034)

Of course, the stock market is notoriously volatile; some years, it even loses money.

I hope this answer helps.

Warren Boroson  

Mutual Funds

All Answers


Answers by Expert:


Ask Experts

Volunteer


Warren Boroson

Expertise

Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.

Experience

Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.

©2016 About.com. All rights reserved.