Navigating the stock market is not easy. But there are indicators, indicators and statistics that can suggest many things and give us some direction. Today, we'll look at three of them that have worked for many years.
1) Longevity is the key
Predicting stock market movements is tricky. Or almost impossible. But there is one indicator that hasn't been wrong for more than a century. That's because it's easy to get swept up in short-term market swings. But these are not nearly as important as its long-term potential. Examining the total return of the S&P 500 Index since 1900 is extremely interesting. Analysts examined 104 years of data, from 1919 to 2022, to see which of those 20-year periods saw positive total returns.
They found that no matter what was happening in the stock market during these periods, the S&P 500 index achieved positive 20-year total returns 100% of the time. In other words, at any time after 1900, you could invest in an S&P…