The Miracle of Markets and the 100-Year Dataset That Changed the World

Dimensional

David Booth

Research

10 Pages

Dimensional explains how 100 years of CRSP market data changed investing by replacing guesswork with evidence. Stocks compounded around 10% annually over the full century, reinforcing why broad diversification, patience, and low costs remain central to market participation.

Key Takeaways

Market Returns Endured: U.S. stocks compounded at about 10% annually from 1926 through 2025.
Compounding Was Powerful: $1,000 invested 100 years earlier grew to approximately $17.1 million.
Risk Was Rewarded: U.S. stocks returned about 10%, bonds about 6%, and Treasury bills tracked inflation.
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