In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Bruce Tyson to discuss how the market has performed this past year, including bank failures, debt issues, government shutdowns, inflation, and interest rates.  

They dissect the common belief that the average annual return of the stock market over the long-term is around 9-10%. The market experiences fluctuations, sometimes delivering very positive and negative returns. Therefore, investors should not expect a consistent 9-10% return year after year in the stock market and must maintain a long-term perspective. 

Bruce and Chris also go over historical investment returns, with small value stocks showing the most significant growth over nearly a century. A dollar that was invested in large-cap stocks 98 years ago would have grown to about $11,000 by now, while it would have grown to about $128,000 if invested in small-value stocks. Chris and Bruce encourage investors to properly diversify their portfolios and consider if they’re exposed to these areas of the market. Additionally, they discuss the evolving investment landscape, particularly the rise of income-generating investments like fixed-income and private lending, due to changing interest rates.