Market analysts are echoing Warren Buffett’s famous investing principle, highlighting his wisdom that “no one has ever been a success betting against America since 1776.”
Optimism In US Markets Has Rewarded Investors
In a recent episode of the “Signal or Noise?” podcast, hosts Charlie Bilello, the chief market strategist, and Peter Mallouk, the CEO at Creative Planning, presented a series of charts, including a “Market Crash Timeline,” to illustrate why long-term optimism in the U.S. market has consistently rewarded patient investors.
The core of their analysis, shared by Bilello on X, is a chart tracking the real, inflation-adjusted growth of $1 in the U.S. stock market since the 1870s.
Despite numerous “Market Crash Episodes”—including the Great Depression, the 1970s “Inflammatory Bear Market,” Black Monday, and the COVID-19 pandemic—that dollar grew to over $33,000. This represents a 7% real annual return.
How To Endure Crashes To Win In The Long Run
The analysts stressed that enduring volatility is “the price of admission” for these gains. Mallouk noted that the “single biggest risk is exiting the market,” not being in it.
They cited investing legends like Charlie Munger, who warned, “If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder.”
The discussion also dismantled the idea of timing the market. Quoting Peter Lynch, Bilello noted, “Far more money has been lost by investors preparing for corrections… than has been lost in corrections themselves.”
98% Of Buffett’s Wealth Came After Age 65
The ultimate lesson, the hosts argued, is the power of compounding.
They pointed to Buffett’s own life as proof: 98% of his $150 billion net worth was accumulated after the age of 65.
This, Mallouk explained, “is just showing the power of leaving money in play for a long period of time.”
Futures Rise After A Turbulent Week
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, also closed mixed on Friday. The SPY was up 0.098% at $670.97, while the QQQ declined 0.32% to $609.74, according to Benzinga Pro data.
Over the last week, the S&P 500, Nasdaq 100, and Dow Jones indices declined, 2.23%, 4.04% and 1.49%, respectively.
However, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Monday.
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