Why the S&P 500 isn't a 'safe' investment

Excuse my clickbait-y opening line, friends, I was trying to make a point. 🤪

✍🏻 My latest, "Why the S&P 500 isn't a 'Safe' Investment, and Never Has Been" is live on the blog today.

Follow Money with Katie!

#moneywithkatie #investing #money #personalfinance #stocks #valuestocks

[lucasasselmeier]

It’s relatively safe, the swings are something to be expected. The lows are times to double down for the wise investor. Cheers

[Weeeest]

It’s “safe” if you safely invest. Taking money you might need in a few years and investing it in the s&p is not safe.

[MrMasterDebate]

So, what you are saying is: if you are 30, and you have 37 years of time to grow, you’ll secure that cozy 10% figure

[cowgf]

The S&P 500 is safe if you invest regularly over decades if you try to game it you will lose.

[CaptainBenjamins]

It’s safer than a lot of individual stocks

[circrna]

SP500 is good if you are doing DCA or stay in it looong time or both.

[PrincessCookie]

It is safe for investors that educate themselves. That's why it's called 'annualISED ROI' and not annual ROI - it's a long-term strategy, such index fund/ETF stocks are not for day traders or those expecting to cash out in less than 10 years.

[James]

It seems your definition of "safe" is that a stock or index fund never declines. The general definition of safe is that over a long period of time you will earn at least 10% without losing your initial investment. Based on this definition, the S&P is safe.

[Gohealt]

Can’t she read info graphs of funds or what?

[maximilian_de_luxe]

I agree : )
Global index funds (in Sweden where I live) has performed about 7% per year, but they also spread risk among more countries. If something happens in the US --> it changes % to less USA. Etc.

I think S&P500 is great as a part of a portfolio, not 100%.
Unless you are more risk-oriented : )
I use primarily S&P500 + OMXS30 (Swedish index) = avg 10% every year. It works so far. But I take more risk since I am a "rookie".

Love Maximilian

[lloydg]

It has averaged 9.24% over 150 years.

The S&P 500 has bounced back after market crashes such as the 2008 recession and COVID-19.

Warren Buffett who is arguably the best investor of all time heavily encourages people to secure investments in the S&P 500.

Compound interest, discipline and long holds will and has evidenced itself as being successful for many.

But we should listen to you apparently.

[dr.ibrahim]

Bla bla bla, if you aim >10 years, its safe

[rienaperdre]

but yes you need to invest on the long term on s&p. 3 years out 4 are positive so put your money and come back in 20 years

[socawarrior]

Yea, I agree with you, the s&p was down badly in 2022

[Constitution]

You're right. I knew this going in, but it's always great to hear someone remind me about it. Diversify with gold and silver.

[Grâce-ndx]

I have been investing for about 45 years now and every now and then I would see “experts” like this who are at the end always proven wrong.

[jacc]

You also have to remember that the USA is unlikely to remain the world’s leading economy forever. The power shift in the world is moving to the East.

[joshingyou]

Sp500 is a thing of the past going forward

[CovidDoc]

Enjoy your money week to week ..

Tight people are ill

[apatel]

This vid is terrible financial advice. It’s always gone up over time…. Sure there are periods of 5 year stretches where it doesn’t, but that’s actually a good thing for young investors. And the S&P takes out diversification risk by only investing in the top 500 companies and allocates less based on which companies are losing profitability. The S&P is not a freaking meme coin.