Market Correction: Why This S&P 500 ETF Becomes a No-Brainer Buy at a Discount
The S&P 500 is running hot right now.
Market Correction: Why This S&P 500 ETF Becomes a No-Brainer Buy at a Discount
Overview
With the S&P 500 hovering near all-time highs and its valuation at its highest level since the 2021 tech stock boom, investors need to be prepared for a correction.
Corrections, when the market drops at least 10%, are not necessarily a bad thing for long-term investors; they are just temporary drops that occur regularly and for a variety of reasons. They could be related to economic forces, like slow growth or high inflation, but they could also be a pullback due to an overheated market.
Details
If you invest for the long term, you don't panic-sell when the market corrects, because over time, the S&P 500 has consistently produced double-digit returns. Over the past 10 years, for example, it has had an average annualized total return of 15%, and over the past 20 years, it has averaged 11%.
Source
Originally published at www.fool.com.
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