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Business & Economics

This Investment Strategy Has Been Foolproof Since 1900, and It's the Closest Thing You'll Get to a Guarantee on Wall Street

The Motley Fool
Summary
Nutrition label

76% Informative

There are reasons to believe this epic rally in equities could come to an abrupt halt.

The first notable drop-off in U.S. M2 money supply since the Great Depression in 2023 , the longest yield-curve inversion in history, and the S&P 500's Shiller price-to-earnings ratio hitting one of its highest multiples in 154 years .

Perspective is everything when putting your money to work on Wall Street.

SPDR S&P 500 ETF Trust ( SPY ) and VOO ( VOO ) purchase all 503 securities that comprise Wall Street's benchmark index.

What differentiates these two index funds is their net expense ratios -- i.e., the management fees investors pay, minus any discounts or fee waivers.

This six -basis-point difference can add up to almost $43,000 over a 20-year period.

VR Score

75

Informative language

74

Neutral language

4

Article tone

semi-formal

Language

English

Language complexity

39

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

External references

10

https://ycharts.com/indices/%5ESPX/chart/https://ycharts.com/indices/^SPXhttps://www.fool.com/investing/2025/02/18/investment-strategy-foolproof-1900-wall-street/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=d2bde881-6e3f-479d-9519-1c276057574ehttps://www.fool.com/investing/stock-market/basics/what-is-a-recession/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=d2bde881-6e3f-479d-9519-1c276057574ehttps://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=10589fdd-1f23-49fb-a1f5-0e30d465054a&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001029%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D17177&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=d2bde881-6e3f-479d-9519-1c276057574ehttps://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=10589fdd-1f23-49fb-a1f5-0e30d465054a&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001029%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17177%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DVanguard%2520S%2526P%2520500%2520ETF&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=d2bde881-6e3f-479d-9519-1c276057574ehttps://www.fool.com/author/1813/https://www.fool.com/legal/fool-disclosure-policy/https://ycharts.comhttps://www.fool.com/investing/2025/02/01/us-money-supply-great-depression-big-move-stocks/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=d2bde881-6e3f-479d-9519-1c276057574e

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