The S&P 500 has repeatedly hit record highs in recent years, fueled by enthusiasm around AI, prompting worries that a pullback could be near. The article notes that corrections of at least 10% are common: a Charles Schwab study counted 27 since 1974. Bear markets average 409 days with an average loss of 36%, yet long-term investors who held through them have still earned attractive returns, with the index averaging about 10% annually since 1957. A 2020 Schroders study found that holding the S&P 500 for just a month meant losing money 40% of the time after inflation, falling to 20% over five years and to almost zero over 20 years. The article suggests dollar-cost averaging, investing a set amount each month, as a sensible approach during this period of uncertainty.
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