A Bull Market Is Coming: 1 Perfect Index Fund to Buy in 2023 and Hold Forever
S&P Global is a financial company best known as the creator of the S&P 500 index, which is widely regarded as a benchmark for the entire U.S. stock market due to its diverse nature. Last year, economic uncertainty arising from red-hot inflation and rising interest rates caused the S&P 500 to fall into a bear market, and the index is still 15% off its high.
Not surprisingly, many growth stocks have fallen even more sharply, simply because growth stocks are usually valued based on future revenue and free cash flow, and those metrics tend to look quite grim during periods of economic hardship. As a result, the S&P 500 Growth index -- another product curated by S&P Global -- is currently 27% off its high.
However, investors should be aware of two things: First, the S&P 500 has suffered dozens of bear markets in the past, but the index has always recouped its losses during the next bull market. Second, while growth stocks have sharply over the past year, the S&P 500 Growth index has still outperformed the S&P 500 over the past one, two, and three decades.
Source Fool.com
