US large growth tech stocks returned 50% plus in 2023 and 2024, but that's not normal. The long-term average for the US stock market is about 10% per year. Chasing recent winners is how people wreck their portfolios.
Stocks, particularly US Large growth tech stocks, have done so well the last two years, right? 2023 and 2024 both had returns of like 25% a year. And so a lot of people are looking at that and saying, oh, that's what I should invest in. I should invest in U.S. large growth tech stocks because they return 25% a year. Well, I got news for you, all right? The US stock market does not return 25% a year every year. If you are thinking this is normal, I've got news for you. This is not normal. You know, if you look at long term returns for the US stock market, it's about 10% a year. But that includes a number of years like the last couple of years where you're making 25 or 30% a year. And it includes years like 2008, both stocks and bonds got pummeled. This is not normal to get 25% on stocks every year.
Physician Takes a Youth Sports Team to the State Championship - MtoM Podcast #236
