Updated
Updated · Yahoo Finance · Aug 16
$1,000 S&P 500 Crash Buys Since 1950 Grew Past $750,000 Across 11 Selloffs
Updated
Updated · Yahoo Finance · Aug 16

$1,000 S&P 500 Crash Buys Since 1950 Grew Past $750,000 Across 11 Selloffs

3 articles · Updated · Yahoo Finance · Aug 16

Summary

  • $11,000 spread across 11 S&P 500 crashes since 1950 would be worth more than $750,000 today, based on an analysis of buying about 10% above each market bottom.
  • The calculation used bear markets of 20% or more, from 1957 through 2022, and valued each $1,000 purchase against the S&P 500's current level near 7,750.
  • The biggest dollar gains came from the oldest downturns: a 1957 buy grew to about $180,233, while 1962, 1970 and 1974 purchases each topped $100,000.
  • More recent crash buys still compounded strongly but from higher starting levels, with 2009 rising to about $10,403, 2020 to $3,150 and 2022 to $1,970.
  • The results underscore the long-term payoff of buying during panic rather than trying to time exact bottoms, with the combined return exceeding 68-fold.

Insights

Does the proven crash-buying strategy still guarantee wealth if a future market takes decades to recover instead of months?
If every historical market crash minted millionaires, why do most investors still panic and lose money during downturns?
Could today's extreme market concentration mean the next major crash recovery will leave the biggest tech giants behind?