I was mucking around with the yearly returns on the S&P500 – I wanted to see how the returns were distributed and I got the graph below.
The graph covers almost a century of data and told me something very interesting – there are actually fewer down years than I had imagined. I didnt really know what my preconception was but I was surprised at how often the index finished in positive territory in terms of its return. Just goes to show that you should never rely upon your assumptions.
How does the asx200 for another post another time perhaps