#SNP500

EricOnEquitiesEricOnEquities
2025-06-03

Suppose you’re aiming for a half-million-dollar house and want a 20% down payment. In that case, your savings target would be $100,000.

You’d be surprised how smart steps today can add up over the years!

Investing $1,000 per month (at an annualized 10% real rate of return, which is approximately the S&P 500 return) works out to $100,000 after only 6 years and 3 months.

EricOnEquitiesEricOnEquities
2025-05-30

This blows my mind. Four groups of hedge funds (as active as investors can get, aggressively buying and selling) against just passively investing in the S&P 500. Hands down, the winner was the S&P. Admittedly a strong decade but the same is generally true today.

A diverse collection of the most prominent companies is really hard to beat over time.

Chart of S&P 500 returns vs funds of active hedge funds.
EricOnEquitiesEricOnEquities
2025-05-30

If you zoom out a bit, the market has been on a tear for a few years now - it makes sense things should cool off.

The long-term average of the S&P 500 CAPE ratio is around 16.80, so the current level of 34.82 is significantly above the historical average.

EricOnEquitiesEricOnEquities
2025-05-21

Beating the S&P 500 is difficult because it's designed to represent the strongest companies in the market, and it naturally benefits from long-term economic growth.

EricOnEquitiesEricOnEquities
2025-05-19

The S&P 500 index price isn't just a simple sum of all the stock prices of its constituents.

It's a weighted index, meaning the value is calculated based on the market capitalization of the companies within it.

Larger companies have more influence on the index's movements than smaller ones.

&P500

MugsysRapSheet 🔩🐑🐘MugsysRapSheet
2024-06-18

& both closing at highs today.

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