After peaking on 3/24/00, the S&P 500 index fell 47%, then gained +121%, then lost 55%, then gained +529%, then lost 34%, and finally has gained +94% through the close of trading as of last Friday 6/11/21. An investor who rode out all 3 “bear/bull” cycles since 3/24/00 would have gained an annualized +7.0% per year over the entire 21+ years (total return) in spite of initially investing at an all-time high on 3/24/00. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock’s weight in the index proportionate to its market value (source: BTN Research).
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