When it comes to investing in the stock market, TIME, not timing, matters most
Here’s why the smartest of investors stick with the stock market for the long haul:
- Emerging market indices have some of the highest return potentials. The Nasdaq 100 Index is comprised of 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization. The index has an attractive annualized return potential, averaging approximately 13% between December 31, 2007, and June 28, 2019. However, it can also carry a higher degree of risk and volatility compared to other indexes.
- The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization. It has averaged a lower annualized return when compared to the Nasdaq 100, averaging an approximate 9% annualized return across the same time period of December 31, 2007, and June 28, 2019, with less volatility.
- Long-term investing helps you avoid emotional trading that can hamper investor returns. Just consider this: even amid significant setbacks such as the Great Depression in 1929, Black Monday in 1987, the tech bubble in 2000, and the financial crisis in 2008, investors would have experienced gains had they made an investment in the S&P 500 or Nasdaq 100 and held it over the long-term.
If you have questions or need guidance, please reach out for help. Vann Equity Management would love to discuss your plans and help you make the most of your investing years. Hope to hear from you soon.
The information contained in this material is for general information only and are those of the author, and not a recommendation or solicitation to buy or sell investment products. This material was developed and produced by Levitate which is not affiliated with the named broker-dealer. For a comprehensive review of your personal situation, always consult with a tax or legal advisor.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
S&P 500 – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.