This chart shows why stocks aren't all they're cracked up to be

Core Insights - The article discusses the misconceptions surrounding long-term investment returns and highlights that many investors may not fully understand the actual performance of their investments over time [1] Group 1: Investment Returns - Long-term investment returns are often overstated by financial institutions, leading to unrealistic expectations among investors [1] - Historical data shows that the average annual return of the stock market is around 7% after inflation, but this figure can vary significantly based on the time frame considered [1] - The article emphasizes the importance of considering market cycles and the impact of economic downturns on long-term returns [1] Group 2: Investor Behavior - Many investors tend to react emotionally to market fluctuations, which can negatively impact their long-term investment performance [1] - The article suggests that a disciplined investment strategy, rather than emotional decision-making, is crucial for achieving better long-term results [1] - It highlights the tendency of investors to chase past performance, which can lead to poor investment choices [1]