40 days ago • Posted by Martin Boujol
It's rather unlikely to lose money on the S&P 500
Computing the rolling price returns from the 1930s up to January 2021, we can see that there is a little chance of losing money when investing in the S&P 500. And of course, the longer you're in, the less likely you'll lose. Even if you stay invested only one day, your return has 4% more chance to be positive than negative. If you stay invested 10 years, you only have 10% chance of making a loss.
Source: Bloomberg, S&P, Richard Bernstein Advisors