A $10,000 investment in the S&P 500 at its March 2000 peak would now be worth $53,120 despite two major crashes.
A $10,000 investment in the S&P 500 at its March 24, 2000 peak of $1,527.46 would now be valued at $53,120, despite a 49% drop during the dot-com bust and another halving in the 2008 financial crisis.
The index plunged to $776.76 by October 2002, recovering only by 2007 before the next downturn. The dot-com bubble saw unprofitable companies like Pets.com go public at inflated valuations, leading to widespread losses.
Long-term holding through volatility demonstrates the index’s resilience, with compounding gains offsetting short-term declines.