With a monthly full money extra, I'm Chris Hill.

The recent sudden drop in the stock market notwithstanding, investing in stocks really

is the best way to build one's wealth over the long term.

Someone who knows that well is Howard Marx.

A legend in the investing world.

Marx is the co-founder of Oak Tree Capital, one of the biggest money management firms in

the world.

In the fall of 2018, you spent some time talking with my colleague Bill Mann about how the

average return of the stock market rarely happens in a given year.

Starting at the University of Chicago in the 60s, people even before the computer age figured

out what the return on stocks had been.

Since 29 to 62, I think they did the work 9.2 percent, then it's been extended since then.

So stocks return 9.10 percent a year on average for long periods of time.

We know that.

They rarely return between 8 and 12.

Many more observations are outside of the 8 to 12 range than inside it.

My first observation is that the average is not the norm.

Why is it if stocks return 10 percent a year on average?

Why don't they just return 10 every year?

The answer, the biggest answer is emotional excesses to the upside, which then require correction

to the downside.

We all have emotions.

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