Overview
- Long-run data show alternating bull and bear markets since 1872, which analysts use to argue that the current bull phase will eventually end.
- Experts say precise timing of market peaks or troughs is effectively impossible and that mistimed moves can sharply reduce returns.
- An Invesco analysis cited in coverage found missing a small number of the market’s best days can cut multi-decade returns dramatically, supporting a stay-invested approach.
- The Vanguard S&P 500 ETF (VOO) tracks 500 large U.S. companies, launched in 2010 and has averaged about 14.9% annual return since inception, according to the reporting.
- VOO charges a 0.03% expense ratio, which keeps costs low for investors and, combined with broad sector diversification, is presented as the pragmatic way to prepare for a future market downturn.