Rolling 12 Month CAGR Overview: Ten Year Analysis
A market’s 12 Month Compounded Annual Growth Rate (CAGR) tells us how a market has performed over the recent past. It fails however, to provide any degree of perspective over time. If a market generates a 12% CAGR in a year is that good or bad? Some might say any positive return is good. That unfortunately is a little to simplistic. A 12% CAGR return for the Eurodollar market would be fantastic … but the same 12% return for Sugar might be considered sub par. Historic perspective is the name of the game when it comes to comparing performance.