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Politics : Politics for Pros- moderated

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To: TimF who wrote (762902)5/15/2022 2:34:02 PM
From: skinowski3 Recommendations

Recommended By
Sdgla
skier31
Triffin

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Corporations in the S&P 500 Index in 1965 stayed in the index for an average of 33 years. By 1990, average tenure in the S&P 500 had narrowed to 20 years and is now forecast to shrink to 14 years by 2026. At the current churn rate, about half of today’s S&P 500 firms will be replaced over the next 10 years.
This is an excellent argument in favor of index investing. An index like SP500 is, in effect, a ready made momentum strategy - “over the hill” companies get removed. They get replaced by younger, more aggressively growing companies. Buy SPX, use the simplest trend following system you can find in order to avoid Big Bears - and live happily ever after. You should do fine.

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