Investing Into The Big Picture

Many people get caught up in the risks of the stock market and the potential for failure that has been prevalent in the past. After all, the 47.88% drop in the S&P500 during the financial crisis of 2008 is nothing to bat an eye at. However, let's take a look at the bigger picture and look at things from a mathematical perspective.

On average, the S&P 500 (a composite of 500 large companies listed on the NYSE) has returned just around 10% annually since its incpetion in 1926. To put that into perspective, if you had invested $10,000 into the S&P 500 in 1926, it would now be worth $23,218,522.59. Not convinced? Too far in the past? Let's talk a little more recent. An investment of $145,000.00 (the equivalent of $10,000 adjusted for inflation from 1926) into the S$P 500 in the beginning of 2007, a year before the financial crisis of 2008, would still return a whopping $473,769.29 today.

Looking at the big picture helps investors feel more comfortable and secure about their money sitting in the market. A short term mindset will only send you into a spiral of emotions that is simply not worth the stress. Having this long term approach when investing can keep you calm in times of market uncertainty.

My opinion? Stop waiting. Everyday that goes by is another opportunity to get your money out there and working for you. Stop thinking micro and start thinking macro.

Thank you for your time!

You can follow me on IG at @essentialsofinvesting

Let the chart speak for itself.

Disclaimer: This post is simply for educational purposes. I am not here to give financial advice. I am simply giving my own opinion.