U.S. stocks have delivered 8.7% a year since independence was declared in 1776

The S&P 500 and its predecessors have generated an average annual return of 8.7% since 1776, according to financial history data. This figure includes dividends reinvested and adjusts for inflation. The calculation spans from the Declaration of Independence through 2024, covering wars, recessions, market crashes, and periods of expansion. Returns varied significantly across decades, with some years producing double-digit gains and others resulting in substantial losses.

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