Finally, the S&P 500 was able to close above the 1900 point, mark. The benchmark index squeaked into the level last week by closing 0.58 basis points above 1900. Does this mean that all is well and the Bull Run will continue and we can simply lay back and relax? Absolutely not! Warren Buffett said it best himself; âIf you are not going to be proactive with your money, then, buy the index. You will still lose money; just slowly.â
Hopefully investors have a money managment system in place and hopefully the surprise won't be as big Never good when people lose their hard earned money.
And how is buying the S&P500 index a losing proposition in the long run, when its average yearly return is close to 10%??