S&P 500: Gateway to Global Investment That Investors Shouldn't Ignore - Lanta News
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S&P 500: Gateway to Global Investment That Investors Shouldn't Ignore

S&P 500: Gateway to Global Investment That Investors Shouldn't Ignore
In an era of rising living costs, saving money in a bank account may no longer be sufficient, as 'inflation' is a silent enemy gradually eroding the value of savings. Finding financial tools that can generate returns higher than inflation is crucial for investors worldwide, and one answer widely accepted is the 'S&P 500 Index'. The S&P 500 (Standard & Poor's 500) is a stock market index that compiles the 500 largest public companies in the United States, selected based on market capitalization, liquidity, and defined profit criteria. This index serves as a large mirror reflecting the overall economic landscape of the US and global economy, with companies in this index representing over 80% of the total US stock market. Key features attracting global investors include automatic screening (removing weak companies and adding strong new ones), excellent risk diversification across industries, and an attractive long-term average return of approximately 10% per year before inflation.