- PRICING
- LIVE QUOTES
- LEARN
- HELP
EN
If You'd Invested $10,000 in an S&P 500 ETF During the Last Bear Market, Here's How Much You'd Have Today
Key Points
Even if you put money to work just before the last bear market started, in theory making a terrible timing call, you’d have captured a 73% total return.
Investors who were lucky enough to buy in at the very end of the last bear market posted a stellar 129% total return.
The S&P 500 index (SNPINDEX: ^GSPC) is near all-time highs right now. However, the world's preeminent stock market benchmark doesn't go up and to the right in a smooth and straight line. There is volatility that investors must deal with. And equity prices can be in down cycles for long periods of time.
But it always pays to adopt a long-term mentality. If you'd invested $10,000 in an S&P 500 exchange-traded fund (ETF) during the last bear market, here's how much you'd have today.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
The most recent bear market lasted from early January 2022 to mid-October of that year. Let's say you purchased $10,000 in an S&P 500 ETF on Jan. 3, 2022, the absolute worst time just before the market started its descent. As of Sept. 28, you'd have captured a 73% total return, growing that starting capital to $17,300.
This clearly demonstrates that even if you put money to work at record highs, the market can reward you with sizable gains.
Now let's assume that you were able to precisely time your buy. If you purchased an S&P 500 ETF on Oct. 12, 2022, before the market began to rise, a $10,000 initial investment would be worth $22,900, equating to a total return of 129%.
The takeaway from this performance is that buying the dip can be incredibly lucrative.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.