The S&P 500 Is at a Near-Record High. Here's What History Says Every Long-Term Investor Should Do Right Now.
Don't panic, but the market looks expensive, with the S&P 500 hovering near all-time highs. It has been here many times before.
Overview
Between 2000 and 2002, the S&P 500 index (SNPINDEX: ^GSPC) lost 40% of its value. If you go from the highest point to the lowest point over that span, the decline was just shy of 50%! That period, when the dot-com bubble burst, was a brutal period for investors. And yet, if you look at a graph of the S&P 500 index today, that drop is barely even noticeable.
Having lived through the dot-com crash, I can assure you that every investor was well aware of the bear market at the time. The same was true for the bear market around the Great Recession, another deep one. But, like the dot-com bubble, the Great Recession is also just a blip in the S&P 500 index's long upward climb.
Image source: Getty Images.
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Originally published at www.fool.com.