(Free Report) Today's Top 5 Stocks Priced Below $10

Investing in stocks under $10 could increase the returns on your portfolio, especially if you pick the right stocks. Within this report you will find 5 top stocks that offer the best bang for the buck. Add them to your watchlist before they take off!

By clicking the link above you will automatically opt-in to receive emails from MarketHundred

Dividend Investor Backtests Investing $1,000 Annually In S&P 500 Based On Key Prices: Why They Suggest You 'Avoid Timing The Market'

Chris Katje
April 09, 2024

The S&P 500 has hit several all-time highs over the last year and remains a key investment option for those looking for exposure to the largest American public companies.

A popular social media account focused on dividend stock investing highlighted how investors scared of properly timing the market may miss out on future gains.

What Happened: Launched in 1993, the SPDR S&P 500 ETF Trust (NYSE:SPY) was the first U.S. listed exchange traded fund.

Since then, the leading S&P 500 Index ETF has grown to $500 billion in assets under management and remains one of the most traded and closely watched ETFs today.

Popular X account Dividend Growth Investor recently shared a backtest of investing $1,000 in the SPY each year from 1993 to 2023 to see how much of an impact trying to time the market had for investors.

The four tests were down based on the following:

Investor A: $1,000 invested per year at the first available closing price for the year

Investor B: $1,000 invested per year at the highest closing price for the year

Investor C: $1,000 invested per year at the lowest closing price for the year

Investor D: $1,000 invested per year at the last available closing price for the year

The backtests assumed no commissions and dividends being reinvested.

Here were the returns according to the investor, with today's value listed below.

Investor A: $207,000.72

Investor B: $177,796.12

Investor C: $228,001.77

Investor D: $187,997.16

Related Link: How To Invest In Index Funds

Why It's Important: The results show that the investor who invested at the lowest closing price gained the most, which was expected. The results also show that the person who invested $1,000 annually at the first close each year outperformed others.

Surprisingly, the return between the person who invested at the highest closing price and the last available closing price of the year weren't that far apart.

"The conclusion that I have is to avoid timing the market. Even if you consistently buy at the low of the year, every single year (which is impossible to do), you are not really that better off than someone who bought everything at the beginning of the year," the investor tweeted.

The investor also said that fear of buying at the top of the market, which is also impossible to do consistently, could prevent returns based on the backtest.

"When you start averaging out, and stacking those investments year in and year out, brick by brick, you are in effect zooming out. You are taking a longer-term approach and building wealth."

While backtests are only hypothetical investments and could be a should've, could've idea for investors, they can also show historical patterns.

Legendary investor Warren Buffett has often said that for most people, index funds are the best investments to make.

Read Next: Why Buy Stocks In A Presidential Election Year? History Has A Crazy Stat For You

Photo: S&P 500 illustration via Shutterstock

Continue Reading...

Popular

Germany Nears Decision To Ban Huawei 5G By 2026: Report

Germany is moving towards removing Chinese technology from its 5G core network by 2026, with support from three key ministries citing national security concerns.

AI & Crypto in One $11 Investment - Ad

Right now, you can harness the power of two bull markets... Artificial intelligence and cryptos...In one simple $11 investment.

Top 3 Real Estate Stocks That Are Set To Fly

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down.

Microsoft's Satya Nadella To Employees: 'Prioritize Security Above New Features'

CEO Satya Nadella drives Microsoft's security overhaul in response to recent cyber threats, prioritizing protection post-breaches.

5 Wall Street Legends Just Bought This One Stock - Ad

"If you're not at the table, you're on the menu," says former Goldman Sachs VP, Dr. David Eifrig.

REE Automotive: Electrifying The Truck Stop? Analyst Bullish On EV Platform

Analyst initiates Buy rating for REE Automotive with $14 price target. Expects growth catalyst in FY24, revenue ramp in FY25, positive margins in FY26.

Trump Meets With DeSantis, Noem Stirs Up Controversy: How Will Republican Vice President Betting Odds Be Impacted?

The relationship between Donald Trump and Ron DeSantis was heated at times during the Republican primary season, before the Florida governor dropped out of the 2024 presidential election and threw his support behind the

Elon's New A.I. Device is About to Shock the World - Ad

Using this device you see... Elon Musk just tested a new type of A.I. that according to Wired Magazine will usher in... "The next step in human evolution."

Federal Judge Indefinitely Postpones Donald Trump's Classified Documents Trial

The trial of ex-President Donald Trump for retaining classified documents has been postponed indefinitely by a federal judge.

Japan's economy shrinks on weak consumer spending, auto woes

TOKYO (AP) — The Japanese economy shrank at an annual rate of 2% in the first quarter of this year, as consumption and exports declined, the government said Thursday.

READ THIS If You Missed Out on the AI Boom - Ad

Radical new biotechnology predicted to grow 320,000% in 3 years. Nvidia's CEO calls it "the next amazing revolution." And one small company poised to dominate this revolution trades for just $10.

Elon Musk Issues Stark Warning Amid Rising National Debt: '...The Dollar Will Be Worth Nothing'

Elon Musk has voiced concerns about the future stability of the U.S. dollar, highlighting the escalating national debt as a potential catalyst for a looming economic crisis.

Elon Musk Shares Who He'd Want To Spend His Last Moments With In Response To Warren Buffett's Advice

Over the weekend, Elon Musk agreed with a sentiment shared by investment titan Warren Buffett about the importance of spending time with loved ones, despite their contrasting investment philosophies. 

Central Banks Buying Gold in Record Numbers - Ad

Most folks have completely missed the fact that the world's Central Banks have been quietly gobbling up as much gold as they can... Stacking it in their locked vaults on pallets in record numbers. Find out why right here (and see what you can do to get in too with just a few dollars).

Demand Soars For Novo Nordisk's Weight-Loss Drug Wegovy Despite Supply Constraints And Eli Lilly Competition

The Danish pharmaceutical company is now shipping more introductory doses of Wegovy to the U.S., as it grapples with supply constraints and competition from Eli Lilly.

Shell Exits Chinese Power Market, Eyes Gas Growth: Report

Shell reportedly exits China's power markets, focusing on bolstering profitability in natural gas and oil sectors. The move reflects a commitment to invest selectively in profitable ventures within the power sector, aligning with CEO Wael Sawan's vision.

Billionaires Are Now FLOODING Into Gold - Ad

Ray Dalio, John Paulson, and many others all recommend you own gold right now. But did you know there's another huge investor (worth more than all the world's billionaires COMBINED) buying gold by the ton? That's why the best move to make right now could be this little-known gold investment (which you can get started with for just $5).

Fraudsters target small businesses with scams. Here are some to watch out for

NEW YORK (AP) — It's never fun to be scammed, but if you're a small business owner then falling for a scam can have long-lasting effects on a business, damaging client relationships and profit.

PASSIVE INCOME (by this evening) - Ad

Hey, I have an unique opportunity for those looking for additional ways to earn income right now. It can be done from home. You can do it in your spare time. And it only takes 6 clicks and as little as $50.

Investing guru Warren Buffett draws thousands, but Charlie Munger's zingers will be missed

OMAHA, Neb. (AP) — Tens of thousands of investors are expected to once again descend on an Omaha, Nebraska, arena Saturday to vacuum up tidbits of wisdom from billionaire Warren Buffett. But a key ingredient will be missing from his annual Berkshire Hathaway : It's the first since Vice Chairman Charlie Munger .

I-95 overpass in Connecticut scorched during a fuel truck inferno has been demolished

NORWALK, Conn. (AP) — A bridge damaged in a fiery crash that kept Interstate 95 in Connecticut has been demolished.

Amazon's Betting Big on This Unknown AI Company - Ad

Amazon has just made a stunning $144 million investment in one small AI company. Why? Because this under-the-radar firm holds the key to unleashing the full potential of next-gen AI... Its technology is crucial for the most advanced AI chips, including Nvidia's latest breakthrough.

The SEC charges Trump Media's newly hired auditing firm with 'massive fraud'

SAN FRANCISCO (AP) — The Securities and Exchange Commission on Friday charged an auditing firm hired by Trump Media and Technology Group just 37 days ago with “massive fraud” — though not for any work it performed for former President Donald Trump’s media company.

Want to spend the night in a Paris museum or a house owned by Prince? Airbnb plans to list them

In a mad mix of game-show glitter and marketing flash, is offering customers a chance to spend a night in a Paris museum, stay in houses mocked up to look like movie settings, or sleep surrounded by eight Ferrari racing cars.

$25 AI Stock Could Deliver Life-Changing Windfall - Ad

Discover a company at the forefront of the AI revolution, with up to $1 billion in government-backed contracts and 1,372 patent applications. Trading at just $25 a share...

Rio de Janeiro set for Madonna’s massive Copacabana beach concert that will be her biggest ever

RIO DE JANEIRO (AP) — Madonna will give a free concrete on Copacabana beach Saturday night, turning its vast stretch of sand into an enormous dance floor. It comes after Rio de Janeiro spent the last few days readying itself for the historic performance by the “Queen of Pop.”

Is This Nvidia's Secret Weapon? - Ad

You've likely heard about Nvidia's incredible success in AI. But without this startup's technology, Nvidia's groundbreaking AI chips simply wouldn't be possible. It's still flying under the radar. That could change very soon with a major announcement on the horizon.

Turkey halts all trade with Israel over military actions in Gaza

ANKARA, Turkey (AP) — Turkey on Thursday suspended all imports and exports to Israel citing the country's and vowed to continue to impose other measures until the Israeli government allows the flow of humanitarian aid to the region.

Earn Instant Cash Flow (using THIS tactic) - Ad

Can you imagine earning $1,118,721/hr? That's what greedy Wall Street elites have been pocketing for 22 straight years. And now it's available to you.

A tornado hit an Oklahoma newsroom built in the 1920s. The damage isn't stopping the presses

SULPHUR, Okla. (AP) — When Oklahoma and national officials held a press conference Monday to discuss the scale of devastation , Kathy John did what she always does: She showed up to report on it for the town’s weekly newspaper, the Sulphur Times-Democrat.

Delaware judge refuses to fast-track certain claims in post-merger lawsuit against Trump Media

DOVER, Del. (AP) — A Delaware judge on Tuesday granted a request by attorneys for Donald Trump and Trump Media & Technology Group, parent company of his Truth Social platform, to slow down a lawsuit filed by two cofounders of the company.

America Just Hit a Grim Milestone - Ad

Nearly half of U.S. households currently hold no retirement savings. Retirement expert Dr. David Eifrig says what happens next will separate a small number of winners from a very large number of losers. Learn how to protect yourself and your money with his four simple steps that he shares right here.

Microsoft Introduces Isolated AI For US Intelligence To Analyze Secret Data: Report

Microsoft pioneers a groundbreaking move by introducing an isolated generative AI model exclusively accessible to U.S. intelligence agencies. This offline GPT4-based system, functioning in an "air-gapped" environment, promises heightened security for analyzing classified data, meeting the escalating demand for advanced intelligence tools worldwide.

Angel Reese, Cardoso debuts watched widely on fan's livestream after WNBA is unable to broadcast

The WNBA debuts of Angel Reese and Kamilla Cardoso were widely watched on a social media who stepped in when the league's app couldn't broadcast the game.

Defi Coin Triggers All "Buy" Signals and Could Break Out Soon - Ad

Some are calling this the most promising DeFi project since Ethereum itself. Here's the #1 DeFi Coin Set to Soar. While Bitcoin grabs headlines, this lesser known DeFi coin is quietly gearing up for a monster rally. Experts say now is the time to buy before it reaches escape velocity.

South Carolina Senate turns wide-ranging energy bill into resolution supporting more power

COLUMBIA, S.C. (AP) — A bill that power companies call vital to in South Carolina has been turned into a resolution that only expresses support for the idea by the Senate, which wasn't ready to give more latitude to utilities that cost ratepayers billions.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service