The index’s weakness may surprise a generation of investors raised on the cult of “stocks always go up.”
You can’t rely on the S&P 500 as much as you may think
In short
Investors are discovering that the benchmark index may not be as dependable as previously assumed. Recent weakness within the index has actively challenged expectations across the broader financial community. This disruption affects a generation of market participants who grew up believing that stocks always go up over time.
Key points
- Investors must reconsider their long-standing dependence on the consistent performance of…: Investors must reconsider their long-standing dependence on the consistent performance of the S&P 500.
- Current market weakness is testing participants who expect equities to rise continually.: Current market weakness is testing participants who expect equities to rise continually.
- Assumptions regarding guaranteed equity index gains are no longer dependable for modern p…: Assumptions regarding guaranteed equity index gains are no longer dependable for modern portfolios.