Should You Invest in the S&P 500 Right Now or Wait? There's 1 Clear Answer
Key PointsThe S&P 500 has consistently outperformed most stocks and actively managed funds.
The S&P 500 has historically delivered an average annual total return of about 10%, but it has also experienced significant fluctuations over the past seven decades. While the index has risen 15% over the past year and trades near its all-time high, it also trades at 21 times forward earnings, which is higher than its average forward multiple.
Despite this, the S&P 500 has consistently rewarded long-term investors who stay invested through downturns and focus on the long-term gains. With the 500 largest companies in the United States, including Nvidia, Apple, Microsoft, Amazon, and Alphabet, it offers instant exposure to top companies without the need for extensive research.
As long-term investors, it is advisable to start a position in the S&P 500 today and commit to investing more, rather than worrying about timing the perfect entry point.
Brief written by urgent.news from Motley Fool's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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