If a Recession Is Coming, 100 Years of History Says This Is the Best Move Investors Can Make
The smartest move is to simply do nothing.
Overview
100 years ago, Standard & Poor's -- now known as S&P Global (NYSE: SPGI) -- started tracking the U.S. stock market with its "Composite Index" of 90 companies. In 1957, it expanded that list to the top 500 companies, creating the S&P 500 index (SNPINDEX: ^GSPC).
If you had invested $1,000 in that index upon its creation in 1926, your investment would have been automatically recalibrated to include the top 500 companies in 1957. After including reinvested dividends, that investment would be worth around $13 million today. That's equivalent to the purchasing power of roughly $688,900 in 1926.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.