Nobody is an industry of one." - Peerview Data

“...The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.” - Wikipedia

Why does talking about this matter? What does it have to do with financial planning?

-Knowing what the S&P can be helpful if understood correctly, and harmful if understood incorrectly

  • The S&P 500 was introduced by Standard & Poor's in 1957 as a stock market index to track the value of 500 large corporations listed on the New York Stock Exchange (NYSE) and the NASDAQ Composite.
  • During its first decade, the value of the index rose to nearly 700, reflecting the economic boom that followed World War II.
  • From 1969 to early 1981, the index gradually declined–eventually falling to under 300–while the U.S. economy grappled with stagnant growth and high inflation.
  • During the financial crisis that has come to be known as the Great Recession, the S&P 500 fell 57.7% beginning in October 2007 and bottoming out in March 2009.
  • By March 2013, the S&P had recovered all its losses from the financial crisis, and over the last decade, the S&P has climbed more than 400% to reach all-time record highs.

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