Watch episode on youtube: https://youtu.be/OLbPYJJbVXY

Published January 2025. In this episode of "What's the Risk?" we take a look at the performance of the S&P 500 across 2000-2009, which is often regarded as a lost decade due to the negative return the index delivered.  

In more recent times the performance of the S&P 500 has been amazing and it's had some investors believing that the S&P 500 is the only thing they need as their investment strategy. Is that good or bad? As we explain, diversification is probably a better strategy, but if they are planning to use one index as their strategy, they should be prepared to stick with it through thick and thin.

We also look at the impact the Australian dollar had for Australian investors, along with how the returns would have played out with "real world" scenarios had an investor been dollar cost averaging or drawing from a portfolio in a retirement scenario. We also compare some other asset classes an investor could have used across the decade and seen a more positive return.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/  

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S&P 500 Index 1/1926 - 12/2023. January 1990 - Present: S&P 500 Index. Total Returns in USD. Source: Standard & Poors Index Services Group. January 1926 - December 1989: S&P 500 Index Source: Ibbotson data courtesy of © Stocks, Bonds, Bills and Inflation Yearbook, Ibbotson Associates, Chicago (annually updated works by Roger C. Ibbotson and Rex A. Sinquefield). Copyright 2024 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.

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