Ramsey Host Urges $300,000 VOO Buy as 42% 2-Year Gain Underscores Cost of Waiting
Updated
Updated · 24/7 Wall St. · May 21
Ramsey Host Urges $300,000 VOO Buy as 42% 2-Year Gain Underscores Cost of Waiting
3 articles · Updated · 24/7 Wall St. · May 21
$300,000 in idle cash should go into Vanguard's S&P 500 ETF now, the Ramsey Everyday Millionaires host told a caller, arguing that trying to time the market is costing more than short-term volatility.
VOO closed at $674.59 on May 19 and has returned 24.85% over one year, 42.01% over two years and 322.83% over a decade, while charging a 0.03% expense ratio.
The show estimated that investing the lump sum and adding $3,000 a month could grow the account to nearly $700,000 in five to seven years, enough for a substantial Los Angeles down payment.
Market nerves remain mixed: consumer sentiment was a weak 53.3 in March, but the VIX has eased to 17.82 from 31.05 in late March and the 10-year/2-year Treasury spread is a positive 0.54%.
Apple—about 7% of VOO—helps explain the fund's recent strength after reporting $111.18 billion in quarterly revenue, raising its dividend 4% and approving a new $100 billion buyback.
Is lump-sum investing at market highs truly wise, or a recipe for disaster for investors holding cash?
With consumer fear at a record low, why are corporate profits and the stock market soaring to new highs?