March 28, 2024

The S & P 500 has hit 1176 new highs since its 1957 inception. History suggests that investors should expect markets to ascend to many new highs over their lifetimes, even if the path isn’t always a straight one.

Here are some fun facts to back that statement up:

· The S &P closed out the year 1962 at 63. It ended at 4770 in December 2023.

· The cash dividend paid out during 1962 was $2.15, last year it was $70.30.

· The Consumer Price Index (CPI) ended 1962 at 30. It closed out 2023 at 307.

Thus, the 62 year ( 1962- 2024) scorecard in round numbers:

*S&P 500: +UP 76 times

*Cash Dividend: +UP 33 times

*CPI (a measure of inflation): UP 10 times

~Conclusion: It is essential that investors own equities continuously for the rest of their lives.

Mainstream equities have been the simplest and most effortless way of building real wealth (net of inflation- CPI), while generating cash dividend income in retirement that grows at a significant premium to the inflation rate.