As we finish the year, the Dow is up almost 28%. What has the Dow done over the past 5-years?

The Dow Jones index has averaged around a 12% gain per year, for the past 5-years… how does that stack up from a historical perspective and have major peaks taken place when with the average return is at this level?

The above inset chart from my friend Ryan Detrick at Shaeffer Research reflects the average 5-year annualized gains of the Dow over the past century. As you can see the only time a major top took place with 5-year annualized gains in the 12% range took place in 2007.

Other than 2007, most of the key tops in the Dow over the past 100-years took place with much higher 5-year average returns.


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