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Is It Safe to Buy Stocks With the S&P 500 Near Its Record High? Here's Warren Buffett's Investing Advice

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) soared 24% in 2023, and investors have bid the benchmark index to multiple record highs this year. That widely quoted advice calls attention to a quirk of human nature. To quote Buffett, "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."

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Is It Safe to Buy Stocks With the S&P 500 Near Its Record High? History Gives a Surprising Answer

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) advanced 10.2% To be clear, that quote does not mean the S&P 500 will definitely move higher in the coming months, but it does explain why investors can buy thoroughly researched stocks with confidence right now. Those gains were primarily driven by rate-cut hopes.

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Is It Safe to Buy Stocks With the S&P 500 at a Record High? Warren Buffett's Advice Could Save Investors From Costly Mistakes

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) advanced 31% over the past year as investors became more confident in a soft landing, a scenario in which the Federal Reserve successfully tames inflation without tipping the economy into a recession.

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1 Little-Known Vanguard Index Fund to Buy Before It Soars 50%, According to a Wall Street Analyst

The Motley Fool

I am talking about the S&P 500 (SNPINDEX: ^GSPC) , the Dow Jones Industrial Average (DJINDICES: ^DJI) , and the Nasdaq Composite (NASDAQINDEX: ^IXIC). Likewise, Ed Clissold at Ned Davis Research was quoted by Morningstar in November as saying, "Small caps are trading near their steepest discount on record."

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Should You Buy Stocks in 2024 Despite the Greatest Recession Risk in Decades? Take Advice From Warren Buffett and Peter Lynch

The Motley Fool

For context, the benchmark S&P 500 (SNPINDEX: ^GSPC) fell by an average of 32% during those events, with peak losses ranging from 14% to 57%. To quote Buffett, "The best chance to deploy capital is when things are going down." economy since 1960, and each one involved a sharp decline in the stock market.

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The S&P 500 Just Did Something It Has Only Done 10 Times Before. History Says the Stock Market Will Do This Next

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) is up 18% in 2023, but the gains have been far from linear. To quote the familiar platitude: Past performance is never a guarantee of future results. Instead, the stock market has been a rollercoaster of ups and downs as investor sentiment has whipsawed in response to various signals.

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A Bull Market Is Coming: 1 No-Brainer Growth Stock to Buy Now With $100 and Hold Forever

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) returned an average of 169% during the dozen bull markets that have taken place since its creation in 1957. Unfortunately, spend per active buyer continued to decline, offsetting the benefits of a larger consumer base.

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