Buying S&P 500 Before 2008 Crash Earned 363% Returns
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- S&P 500 has gained just 0.24% since the beginning of the year, according to the source.
- American Association of Individual Investors weekly survey shows 35% of investors feel optimistic about the next six months while 37% feel pessimistic — up from 29% in early February.
- S&P 500 index fund investors who bought in December 2007, just before the Great Recession, would have earned total returns of more than 363% by today, even though the index didn't reach a new all-time high until 2013.
- The source warns that market timing is a "double-edged sword" — waiting too long to invest risks missing the recovery, even though buying at 2009's bottom would have been more profitable.
- The article notes that individual stocks are more likely to crash and burn than the overall market, citing weak business models, shaky finances, lack of competitive advantage, or poor leadership.
Why it matters: The S&P 500's flat 0.24% YTD performance and rising bearish sentiment (37% of AAII respondents, up from 29% in early February) don't change the historical pattern: buying at the December 2007 peak — just before a recession that lasted until mid-2009 — still delivered 363% total returns, supporting consistent long-term investing over market-timing.
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