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The S&P 500 (SNPINDEX: ^GSPC) hit a record high earlier this year, certifying the bull market that began when the index bottomed out in October 2022. But it's currently in the midst of a modest sell-off, which started at the end of March, as investors navigate headwinds relating to inflation and interest rates.
Consider this: fully 95% of all large-cap stock mutual funds underperformed the S&P 500 index over the 20 years through 2022, per data from S&P Global. The S&P 500 reflects large-cap stocks, though. How about small-cap stocks? Real estate funds? What about over shorter periods?
Many investors are familiar with the three major U.S. stockmarket indexes. Those three indexes cover different facets of the domestic stockmarket, but they all measure the performance of large-cap U.S. As a result, the Russell 2000 has advanced just 5% since April 2022, but the S&P 500 has returned 22%.
Many oil and gas companies used the period of outsize earnings from 2021 and 2022 to pay down debt and improve their balance sheets. A plug-and-play investment vehicle for passiveinvestors The Vanguard Energy ETF is a simple, low-cost way to invest in U.S. energy stocks. Demand for U.S. Then youll want to hear this.
Bill Mann: I would like to speak on behalf of the passiveinvestors out there and just remind people that if you do own an S&P 500 index fund, you already have a very, very large stake in Nvidia, Apple, and Microsoft, so congratulations on participating. It is the burgeoning. it is the Internet back in the year 2000.
BERNSTEIN: I think — RITHOLTZ: Well, 2022, clearly, was a macro investors paradise — BERNSTEIN: Yes. We’re not momentum investors at all. But then 2022, when the momentum faded, as the Fed was tightening and monetary conditions changed, and profits began to slow, we did very, very well. RITHOLTZ: Yeah.
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