Investing $10,000 in S&P 500 - Then & Now

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Today’s episode

Ever wonder how a $10,000 investment in the S&P 500 would have fared over the last 50+ years? Let's explore an interactive chart showcasing this index's remarkable growth and ability to weather storms—from economic crises to global pandemics.

If you missed yesterday's episode, The Investing Wise Academy (IWA) has just launched the IWA Portfolio! What can you expect? We will regularly provide bite-sized but valuable information about our portfolio. If you prefer to follow our trades simply, we'll just share a raw copy of all the trades for our carefully chosen three portfolios. Consider joining our Premium membership. You will have access to our IWA Portfolio, where you can see the daily stocks we trade.

To start, let’s check what’s happening with Palantir👇️ 

This chart illustrates the performance of the S&P 500 index from 1970 to 2024.

This analysis highlights how an initial investment of $10,000 in the S&P 500 would have grown over this period despite various crises and significant events impacting the market. The chart shows the evolution of the investment’s value and highlights the market’s ability to recover over time.

The chart presents the investment growth in the S&P 500 index using a logarithmic scale, which helps visualize relative increases rather than absolute increases. It also marks various milestones and key events along the timeline, such as economic crises, wars, political changes, and technological advancements that have impacted the market. Despite these disruptions, the market has shown a steady upward trend.

The average annual return of the S&P 500 during this period was 10.83%, highlighting the strength of the long-term market. Despite significant challenges, such as the 2008 financial crisis, the COVID-19 pandemic, and major geopolitical events, the S&P 500 has demonstrated a remarkable ability to recover and continue its growth over the decades.

Impact of Crises and Key Events

The chart highlights how different events have temporarily affected the market. Among the events noted are:

• Economic crises include the oil crisis of the 1970s, the dot-com bubble burst in 2000, and the 2008 financial crisis.

• Conflicts and wars, including the Gulf War, the 9/11 attack, and the Iraq invasion, have had significant impacts on global politics and security.

• Political changes, such as U.S. presidential elections and policy decisions, impact the global economy.

• Technological advancements, such as the introduction of personal computers, the rise of the internet, and the expansion of mobile technology, have influenced the stock market. Although these events have caused short-term market volatility, the S&P 500 has maintained an upward trajectory in the long term. This chart demonstrates the stock market's ability to bounce back from global crises and events. Despite short-term fluctuations and challenges, the long-term trend has consistently been upward, emphasizing the benefits of long-term investing.

This analysis reinforces the importance of maintaining a long-term investment perspective, trusting the market’s ability to recover and grow over time.

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Are you prepared to replicate our trades from carefully selected stocks? Check out the newly formed IWA Portfolio! ⬇️ 

IWA PORTFOLIO

Our IWA portfolios consist of trades from our stock basket. We believe in long-term investments and have curated a selection of carefully chosen stocks to create a well-balanced, safe, and profitable stock portfolio. You can access our daily trades from the three portfolios we manage.

• IWA Quality Growth Stocks Portfolio

• IWA Quality ETF Portfolio

• IWA High Dividend Portfolio

The easy way to begin or enhance your investment journey is to learn from what works for others. This section is for you if you want inspiration from an existing investment portfolio.

The IWA Portfolio is only available to Premium Subscribers.

IWA Quality Growth Stocks Portfolio

One of our oldest portfolios, this began during the pandemic. It's where I started paying attention to finding reliable stocks that will safely generate annual profits for me.

Return YTD 13.35%

Return 2Y 71.48%

Profitable Weeks 55.56%

IWA Quality ETF Portfolio

It’s one of the newest portfolios, having just celebrated its first-year anniversary. We are pleased with its progress, as it's safe, reliable, and stable.

Return YTD 11.53%

Return 2Y 44.09%

Profitable Weeks 69.57%

IWA High Dividend Portfolio

I am immensely proud of my holdings, which have grown from a small investment into a strong portfolio of 40 reliable stocks spanning stable industries, focusing on quality dividend growth.

Return YTD 9.38%

Return 2Y 13.37%

Profitable Weeks 50.00%

Portfolio Indicated Dividend Yield 2.67%

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Remember: Investing is a journey, not a destination. It's about making informed decisions, managing risk, and staying committed to your long-term goals. So, take the time to research, experiment, and find the perfect recipe for your balanced portfolio.

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Cheers to wealth, wisdom, and a dash of madness!

The Investing Wise Academy Team

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.

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