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 peaked
at 2,901.52 on 8/31/18 and began its decline to 2,546.18 by 12/18/18. The decline was 355.34 points or about 13%.
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.
On 1/1/17 the S&P
stood at 2,275.12
On 8/30/18 the S&P
500 closed at 2901.52.
On 12/18/18 the
S&P 500 closed at 2,546.18
The Fed announced its
rate hike on 12/19/18.
On 12/19/18 the
S&P 500 closed at 2,506.96
On 12/20/18 the
S&P 500 closed at 2,467.42
On 12/21/18 the
S&P 500 closed at 2,416.62
We S&P 500 Index
holders should watch how long it takes for the average to climb back up to the
2,900 level.
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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