Amazon vs. the S&P 500: Where Should You Invest Right Now?
Investing in the stock market isn't always easy, but it can be especially challenging during periods of volatility. When the market is turbulent, choosing the right investments is critical. The right strategy can set you up for significant returns when the market inevitably recovers, while the wrong investment could wreak havoc on your finances.
In times like these, are you better off seeking safety in numbers with an S&P 500 index fund? Or is it smarter to invest in individual stocks, like Amazon (NASDAQ: AMZN)? It depends on a few factors.
When you invest in an S&P 500 index fund, you're buying shares of all 500 companies within the index itself -- including Amazon. Because you're investing in hundreds of stocks at once, that diversification limits your risk.
Source Fool.com
