Your investment money is likely held in a stock market index fund, or some blend of stocks and bonds. Over the past decade, the S&P 500 has returned 14%-plus, according to FactSet data. As of Monday, the S&P 500 was trading at a forward price-to-earnings ratio of 18.3 times, according to data provider Refinitiv. A few years ago, at Forbes’ 100th birthday party, Warren Buffett articulated this point by offering an uncharacteristically striking stock market prediction. Even if Bitcoin had continued to soar, the S&P 500 did just fine, and you did just fine simply sticking with your existing financial plan.

Source: Forbes February 04, 2020 17:51 UTC