Worried About a Crash? Focusing on This Number Can Drastically Reduce Your Risk
Key takeaways
- The index is a collection of the top stocks on U.S. markets and has averaged an annual return of around 10%.
- There is one way you can reduce risk, however, and that may involve not tracking the S&P 500 right now.
- Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.
The index is a collection of the top stocks on U.S. markets and has averaged an annual return of around 10%. But that s an average that spans decades. There have been some troubling periods along the way, when the index hasn t performed well at all. For investors in or near retirement, or those who can t afford to wait out a recovery, it can be stressful when concerns about a possible market crash are heightened.
There is one way you can reduce risk, however, and that may involve not tracking the S&P 500 right now. One key number to focus on when looking at stocks is beta. This shows how closely an investment has tracked the S&P 500. A beta of 1.0 means it largely follows the stock market; the lower the number, the less volatile it is and potentially the more disconnected the investment becomes, suggesting that even if the market is doing one thing, this investment may be doing something else entirely.
Will AI create the world s first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »