Investors are worried about the economy, both in the U.S. and on a global scale. High inflation and rising interest rates threaten to slow consumer spending and weaken corporate growth, potentially triggering a recession. That concern has sent the stock market plunging over the past year. The broad-based S&P 500 has fallen 23% since last peaking in January 2022, and the tech-heavy Nasdaq Composite has dropped 33% since last peaking in November 2021. That puts both indexes in bear market territory.

Losses of that magnitude can be alarming, but investors can take solace in one simple truth: The S&P 500 and the Nasdaq Composite have been through bear markets before, and both indexes have always recovered. There is no reason to believe this time is any different. That makes the current downturn a buying opportunity, and one smart way to capitalize is by investing in index funds that track the S&P 500 and the Nasdaq Composite.

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Source Fool.com