3 Things History Says Investors Should Know

From Yahoo Finance: 2025-04-27 09:55:00

Over the past 20 years, the S&P 500 index has yielded a 578% total return, turning a $10,000 investment into nearly $68,000, showcasing the stock market’s wealth-building potential.

However, current market volatility due to economic uncertainty from trade policies has caused the S&P 500 to drop 13% from its peak this year.

Investors should understand that market fluctuations are normal, with bear markets and corrections happening frequently. Since 1950, there have been 56 corrections, easing worries for investors.

While market timing may seem like a smart move, consistent success is unlikely. Instead, focus on investing early and regularly, utilizing dollar-cost averaging for long-term wealth building.

Recognizing that volatility is normal and that investing consistently over time is key, investors can position themselves for success and navigate uncertain economic conditions.

Consider joining Stock Advisor to access the 10 best stocks identified by analysts, potentially offering significant returns. Past recommendations have resulted in substantial gains compared to the S&P 500.

Stock Advisor’s impressive average return of 872% outperforms the S&P 500, highlighting the potential for substantial gains by following expert advice and staying invested for the long term.

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