Money For the Rest of Us
Episode 500: The S&P 500 Index and the Decade Ahead
Nov 6, 2024
In a milestone discussion, the hosts dive into the S&P 500 Index, celebrating its 267% return over the last decade. They explore how U.S. stocks have outperformed non-U.S. counterparts and predict a potential 3% return for the coming decade. The conversation shifts to economic forces like AI and geopolitical risks shaping the market's future. Reflection on past financial insights highlights different investment strategies and emphasizes community engagement, setting the stage for more enriching content ahead.
27:23
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The S&P 500 has shown remarkable growth with a cumulative return of 267% since 2014, driven by dominant technology sector contributions.
- Analysts predict U.S. stocks may only achieve a 3% annual return over the next decade, raising concerns about valuation sustainability.
Deep dives
Performance of the S&P 500 Over Time
Since its inception, the S&P 500 has shown significant growth, achieving a cumulative return of 267% since May 2014, which translates to an annualized rate of 13.2%. This outperformance compared to non-U.S. stocks is notable, as the Vanguard Total International Stock ETF only returned 4.5% annually during the same period. Factors contributing to this success include the U.S. stock market's growth, which increased its share of the global stock market from 52% to 65% over the past decade. This substantial rise also highlighted shifts in sector contributions, with technology now dominating the market at 25%, reflecting its critical role in overall performance.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
