The S&P 500 index has entered the correction zone 15 times since 2008, and in 13 of those instances, it was higher one year later, suggesting long-term investment opportunities during market downturns. Buybacks from S&P 500 companies increased by over 7% in Q4 of last year, amounting to approximately $243 billion, indicating confidence among companies despite current market uncertainties.
In 2022, the MSCI World Value Index outperformed the MSCI World Growth Index by over 26%, rising 6.1% while the overall market struggled. This highlights the potential benefits of investing in value stocks, particularly in established industries like energy, healthcare, and financials, during economic downturns.
Studies by Vanguard show that lump-sum investing is more effective than cost averaging 68% of the time, although the latter may be preferable for risk-averse investors. Overall, staying invested rather than holding cash is generally recommended, with both investment methods outperforming cash in 69% of analyzed scenarios.
