2 Vanguard Index ETFs to Buy With $500 and Hold Forever
The stock market has turned in some very robust returns in the past couple of years, which is starting to attract new investors. However, investing in individual stocks is not easy.In fact, one JP Morgan study that looked at individual stock returns in the Russell 3000, which consists of the 3000 largest stocks traded in the U.S., from 1980 to 2020, painted a pretty dire picture. It found that 40% of all stocks in the index suffered catastrophic losses of 70% or more, from which they never recovered. However, if you look at the stock market as represented by the popular S&P 500 index, it has continually moved higher over the long term. The big reason behind this is that while most stocks underperform the index, the approximate 10% of stocks that are "megawinners" tend to lead the index higher over time.Continue reading
The stock market has turned in some very robust returns in the past couple of years, which is starting to attract new investors. However, investing in individual stocks is not easy.
In fact, one JP Morgan study that looked at individual stock returns in the Russell 3000, which consists of the 3000 largest stocks traded in the U.S., from 1980 to 2020, painted a pretty dire picture. It found that 40% of all stocks in the index suffered catastrophic losses of 70% or more, from which they never recovered.
However, if you look at the stock market as represented by the popular S&P 500 index, it has continually moved higher over the long term. The big reason behind this is that while most stocks underperform the index, the approximate 10% of stocks that are "megawinners" tend to lead the index higher over time.
