The S&P 500 Index
is the basis of most 401k investments and includes the stocks of the Fortune
500, the biggest companies in the US.
The S&P 500 showed gains of
21.83% in 2017, when the S&P went from 945.48 in March 2009 to 2901.52 in
August 2018.
The S&P 500 stood
at 2464.47 at noon on 12/20/18. The Fed
Crash lowered the S&P 500 by 437.05 points or about 15%. My Index Fund lost
13.88% on this dip, but I expect it to recover.. The S&P 500 average is
recovering on 12/21/18 and is passing 2470.00.
54 million US
Employees have $5.345 trillion in 401K Plans with $3.615 trillion in
S&P-based Index Funds and $1.730 trillion in other investments. 401K
account holders own 19% of the S&P.
The 401K Plan holders
typically ride out these dips. The
investors who perpetrate these stock market swings are large institutional
investors, who make the stock market go up and down, so they can sell high and
then buy low.
The Dow 30 average is
recovering and after the dip below 23,000 is recovering back to 23,000. The Dow
30 average only affects investors who own those stocks, but it is the “star” of
the stock market soap opera.
Norb Leahy, Dunwoody
GA Tea Party Leader
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