10% - As you read this article, remember this figure.
That’s the approximate average annual return of the S&P 500 Index, the standard measure of stock performance in the US, since its 1926 inception date.1 The key word here is average: there have been a lot of dramatic ups and downs over those 94 years. It is also testament to the power, consistency and resilience of the stock market — the rate is so robust that long-term returns for stocks have outpaced other major asset classes, such as bonds and commodities, by a wide margin.2 For investors who have committed to staying invested for the long term, the benefits have been generous.
![index](https://www.columbiathreadneedle.jp/uploads/2020/06/4a274d424cb2b6a90866a22d3b74cfe2/en_looking_ahead_1.png)
What have we learned from investing through bear markets?
What recovery might look like
![Index](https://www.columbiathreadneedle.jp/uploads/2020/06/e7d56f2be09f02d51e7e42fb6358f275/en_looking_ahead_fig1.png)
![Average factor performance graph](https://www.columbiathreadneedle.jp/uploads/2020/06/0ae60c04feed6d22ed51020b2e893e59/en_looking_ahead_fig2.png)
![The scetors that led the decline can turn around dramatically](https://www.columbiathreadneedle.jp/uploads/2020/06/aa4fa90dcf630eb887bd13ecd9f427e6/en_looking_ahead_fig3-1.png)
![Opportunity can vary within sectors](https://www.columbiathreadneedle.jp/uploads/2020/06/5f6a6ea55e1251b11ad97c83226e35f7/en_looking_ahead_fig4.png)
- Financials, consumer discretionary and information technology were winning sectors in aggregate. But hit rates — the percentage of stocks that outperformed — within those sectors were 66%, 70% and 61%, respectively, relative to the entire market over the 12-month post-trough period.
- Healthcare, consumer staples and energy sectors underperformed in aggregate, but hit rates within those sectors were still 47%, 37% and 55%, respectively, relative to the entire market over the 12-month post-trough period.
![Bond returns during and after two major market corrections](https://www.columbiathreadneedle.jp/uploads/2020/06/c4331a200c528f688d9e6e85da882a50/en_looking_ahead_fig5.png)
![Index](https://www.columbiathreadneedle.jp/uploads/2020/06/a1b0097862e00c658e613282d40951ff/en_looking_ahead_fig6.png)
Conclusion
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