Is the S&P 500 Just a Giant Bubble?

Over time passive investors have become very comfortable with the S&P 500's high returns, but can that go on forever? Will ETF investors (banking on a 10% average annual return) actually see returns as high as this out into the future?

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★ ★ CONTENTS ★ ★
0:00 Can the S&P 500 Keep Rising?
2:37 Can Productivity Continue Rising?
6:00 The AI Debate
7:57 Elon Musk's Grand Plan
9:58 The Forgotten Factor

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[DonaldMark-nese]

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

[StockyDude]

The cool thing about the S&P 500 is that the index managers regularly review the companies on the list. If a company does not have consistent gains, it could be replaced by another one that does. This keeps the S&P 500 healthy overall.

[ArfaanaBinUmar.]

The S&P 500 moved 8.9% higher in November, achieving one of its best monthly performances in history.. which is an indicator for profits to continue to improve. I just want my money to keep outgrowing the inflation rate. I'm still looking for companies to make additions to my $500K portfolio, to boost performance. Here for ideas...

[Debbie.Burton]

Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. I’ve been trying to grow my portfolio of $160K for sometime now, my major challenge is not knowing the best entry and exit strategies ... I would greatly appreciate any suggestions

[hyperhippyhippohopper]

Brandon, your point about long periods of no return in the S&P500 is a valid one, but only if you make 1 single purchase at those starting points and not a single one after. That's not really how most investors go about it. Rather than invest one large chunk of your net income, you invest a small amount in preset intervals. That way you average down on the S&P500, which then gives you better returns. The point at which you start having positive returns comes a lot earlier than the price line of your first purchase, which is then magnified with each percentage point farther up the price scale.

[Thewealthyinvestor-cnsg]

If the 500 biggest US companies are doing really bad then you know the whole world is doing pretty bad too. I say this as a Canadian. Most of the biggest US companies are worldwide anyways

[heatherholdings]

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $2M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I retire in the next 6 years.

[PS_on_youtube]

even if productivity increases, if the population declines then there will be less people to buy the things that are being produced. (kind of a catch 22 situation)

[blaquopaque]

The S&P 500 Index is set to rise toward its all-time high early next year, pullback midyear and then rally back toward the highs, investors like me might have seen this before. I’ve been investing for 11 yrs and my $1m portfolio needs proper asset allocation, how i do navigate this?

[alvaromartinezmateu]

Well, that's why is a good idea to make periodically contributions and not just one time contribution, specially if you make contributions with low amounts of money

[TheSquirrelSam]

Great video but it is so annoying when reading the comments. Rather than any interesting insights you see fake comments pushing you to contact some "amazing" investment manager that will make you a fortune! These are obviously scams but there are so many of them in the comments here and on other channels.

[tHebUm]

Surprised this didn't mention that the S&P500 inherently has a lot of international exposure and is very much not just the US economy anymore.

[jumpflip]

A point that wasn’t considered is if robotics/AI is improving efficiency by not employing people, then how will the general unemployed population make an income to buy the goods that are more efficiently produced? Sounds like a dystopian future. In doing the analysis you can’t leave out the employed/unemployed population factor.

[latebowl]

Small correction; productivity is output per unit labor input. Productivity doesn't depend on population, you're thinking of total output. Population growth multiplied by productivity growth and participation growth gives total output growth.

[cc-dtv]

one factor i don't remember you mentioning, but is very important, is the amount of printed. as long as the money printer keeps going the price of securities priced in $USD only goes up :)

[vladbulauchyk]

Loved this video! Appreciate how you highlighted two opposite points of view and let us decide which we believe in

[xavier_lucas]

With SPX poised near 4400, there is large upside potential if it can break out over that level. I cashed out early, now I have less than a 200k to get into the markets with. Any ideas? Should I get into short positions or is it headed higher.

[georgeh.]

I've totally stopped believing in the S&P to deliver any significant return, especially this period. I'm thinking of redistributing my portfolio to other stocks, but I hardly know which ones will do well. I have about $400k set aside to distribute into profit yielding dividend equities, still not sure of which to get into. Just here for ideas

[cc-dtv]

thanks for the money wisdom chad money, interesting perspective !!!