The Motley Fool urges buying Vanguard S&P 500 ETF in downturns
Updated
Updated · The Motley Fool · May 4
The Motley Fool urges buying Vanguard S&P 500 ETF in downturns
6 articles · Updated · The Motley Fool · May 4
It says the S&P 500 recovered from every bear market, including drops of 34% in 2020, 57% in 2008, 49% in 2000 and 34% in 1987.
The report argues investors who stayed fully invested from 2000 to 2020 still earned average annual returns of about 4%, despite two major bear markets.
It recommends dollar-cost averaging and buy-and-hold investing, warning that selling during declines can lock in losses and cause investors to miss much of the rebound.
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