Weathering the Storm: Why Recessions Are a Buying Opportunity
The next recession is inevitable, but investors shouldn't be worried.
Since the S&P 500 index was launched in its current form in 1957, it has weathered ten recessions. The modern S&P 500 index has consistently bounced back after each downturn, generating an average annual total return of about 10% since its inception.
Market pullbacks can be a great opportunity to buy top stocks at steep discounts. Warren Buffett advises being 'greedy when others are fearful' and buying more shares during market downturns.
A $10,000 investment in Apple on the first day of 2007 would have grown to over $1.33 million today, while an investment in Nvidia would be worth around $4.06 million.