Historically, long-term returns of the stock market have been negative.

true or false?

False

Explanation:

Stocks are long-term investment vehicles. For long-term investment, the period in consideration is ten years or more. In any given year, stock prices keep on fluctuating.

On average, stocks gain about 7 percent annually. Some years may have negative growth. Other years may have less or more than 7 percent. As the GDP grows, stock prices recover from the dips to continue with growth. Over a long time, as the economy improves, stocks appreciate.

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