From The Motley Fool · Chris Neiger · · 50s
History Says Stock Market Sell-Off Coming
Vanguard S&P 500 ETF offers safe haven before market crash.
In brief
Vanguard S&P 500 ETF offers safe haven before market crash. The Vanguard S&P 500 ETF (VOO) provides long-term stability during market downturns with 10.5% average annual returns since 1957. Originally reported by The Motley Fool.
Current Market Strength
The S&P 500 up 78% and Nasdaq Composite up 99% over three years.
CAPE Ratio Warning
Shiller cyclically adjusted price-to-earnings ratio at 41, far above historic average of 17.8.
Market Overvaluation Risk
Most recent gains concentrated in artificial intelligence stocks, with 40% of S&P 500 stocks declining this year.
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF (VOO) offers 10.5% average annual returns since 1957 with 1.05% dividend yield.
Long-Term Strategy
Staying invested during market downturns yields higher returns, with 7 of 10 best days within two weeks of worst days.
The one thing
The Vanguard S&P 500 ETF (VOO) provides long-term stability during market downturns with 10.5% average annual returns since 1957.
