Reuben Gregg Brewer highlights the long-term benefits of a buy-and-hold strategy for the S&P 500 index.

Reuben Gregg Brewer explains that while bear markets can be emotionally difficult, historical data shows that every bear market is eventually followed by a bull market. He notes that the S&P 500 index lost nearly 50% of its value between 2000 and 2002 during the dot-com bubble, yet this decline is barely noticeable on a long-term graph. To navigate these periods, Brewer suggests a long-term plan of buying and holding the S&P 500 index via an exchange-traded fund (ETF). He compares the SPDR S&P 500 ETF and the Vanguard S&P 500 ETF, noting that while the Vanguard option has a lower expense ratio of 0.03% compared to the SPDR option's 0.09%, both are low-cost ways to own the index. MarketWatch reports that investors may be wary of the "cover curse," where a front cover appearance signals a market peak. This is particularly relevant for Nvidia's Jensen Huang, who is receiving significant attention on the latest issue of the Economist.

Sources

• Yahoo Finance
  The S&P 500 Is at a Near-Record High. Here's What History Says Every Long-Term Investor Should Do Right Now.
• MarketWatch
  Six reasons that the risk of a stock-market selloff is rising. Here’s what investors should be doing.

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Paywall and unreadable sources

• The New York Times
  Why Stocks Are Defying Gravity and What Could Bring Them Down
• Seeking Alpha
  Risks Increased For A Stock Market Sell-Off (NYSEARCA:SPY)
• The Motley Fool
  The Stock Market Is Repeating a Pattern Not Seen in Decades. History Says This Will Happen Next.