12 Mar 2019
Market Metrics: S&P 500 Index
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Using the total returns data from the S&P Composite Index (from 1872 to 1957) and the S&P 500 Index (from 1957 onwards) it is evident that there is a 31% probably of a negative return in any single year.
That is almost a 1 in 3 chance of loss based on 146 years of data.
Patience however can and does help reduce the probability of a negative return but how many investors are prepared to wait for 20 years.
Click to view.
Investing in growth assets (shares and property) requires expertise (professional management) in addition to patience. If you buy rubbish then no amount of patience will save you from poor or negative returns.
Also buying more quality assets at discounted prices when fear and panic take hold during a financial crash is another key ingredient for investing.
WARNING, past performance is no guarantee of future performance and the above does not constitute Personal Advice.
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