If you're looking for a simple way to generate wealth in the stock market with little effort, you can't go wrong with an exchange-traded fund (ETF).
[00:00:04] Lee Jackson: Okay, let's do, back to back 20 percent plus years on the S& P 500 and, you know, are we getting close to the ledge?
In the vaguest of senses, investing $1,000 in the benchmark S&P 500 stock market index at the very start of 2024 would have, by the year's end, proven a wildly profitable maneuver. Indeed, a January 2 investment would have, by December 31, appreciated 23.31% to a hefty $1,233.10.
The S&P 500 had a fantastic 2024, roaring into a bull market and going on to deliver a 23% gain. And that's after already climbing in the double digits the previous year.
I maintain a hold rating on VOO due to mixed economic signals and potential volatility from upcoming Q4 earnings reports and macroeconomic data. Key economic indicators to watch include CPI, PPI, and retail sales, which could influence market sentiment and interest rate expectations. The strong US dollar poses an earnings risk for multinational companies, affecting the S&P 500's overall performance due to currency fluctuations.
Putting $1,000 into any investment is a significant commitment, with the obvious goal of maximizing your return and minimizing your losses. One fantastic way to do that is with an exchange-traded fund (ETF), which allows you to buy shares like you would a stock and can be purchased with small amounts of money.
Warren Buffett's stock picking prowess is legendary, and has been the foundation of his successful investing track record with Berkshire Hathaway.
Investing in the stock market isn't for the faint of heart. But a common approach is to invest in the broad market by purchasing shares of an S&P 500 ETF (like the Vanguard S&P 500 ETF) so you get an instantly diverse portfolio.
As investors look ahead to 2025, rebalancing and re-thinking one's investing priorities and strategies can be helpful.
While the fundamental backdrop for equities remains positive, strategists expect a more moderate and volatile year for the S&P 500 in 2025.
Nobody really knows what the stock market might do in 2025. The current bull market is getting long in the tooth, but these upswings do tend to stick around for several years.