Ole Faithful - 3 S&P 500 Facts

We are back! Hope you have been well the last few weeks.

For those who care, I became extremely busy between school and the internship I am working right now. Thankfully though, things have died down a little bit.

The same thing can’t be said for the markets.

Between doge coin, tax rates, and earnings season there is no shortage of action right now.

My main moves the last few weeks have been adding a few shares of DGRO and VOO. Incase you missed my tweet about it, DGRO is a dividend growth ETF I have been buying in my brokerage account.

In honor of uncertain times, I thought it would be fitting to go back to basics with three S&P 500 facts.

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Stealing a quote from a tweet this week. It rings true.

The S&P 500 has been around since 1957 and has seen it’s fair share of market pullbacks. Despite this, it has remained one of the most trusted index’s among investors.

1. The Resume

Getting into the S&P 500 is no easy feat. To be eligible a company must meet the following requirements.

• A market cap of $8.2 billion.

• Headquarters in the U.S.

• The value of its market capitalization traded annually.

• 250,000 shares trade in each of the previous six months.

• Most of its shares in the public's hands.

Keep an eye out for companies you think might achieve this as getting added is a big deal.

1. Battle Tested

The S&P has been through the ringer a time or two. Here is a quick history of a few minor pullbacks.

• 2000 Tech Bubble - S&P 500 fell 40%, not to reach new highs until 2007.

• 2008 Financial Crisis - S&P 500 fell 57% from October 2007 to March 2009. By 2013 the index fully recovered.

• 2020 Covid19 Pandemic - S&P 500 fell 50% in a matter of weeks. Even with this rapid fall, the index made an astonishing rebound driven by vaccine hopes and stimulus.

1. Undefeated Over 20 years

Even with the volatility previously mentioned the S&P 500 has never posted a negative performance over any 20 year period.

Let’s hope I didn’t just jinx it.

If there is one thing to learn from this it is that patience pays off.

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He’s coming for our gainzzzz.

Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you next week!