A Stock Market Correction Could Be Coming. Here's What 100 Years of Data Says Happens Next.

1. 1. The S&P 500, having risen over 30% in the last year, currently trades near all-time highs but appears historically expensive at 31 times earnings, suggesting a potential market pullback.
2. 2. Despite the possibility of a market correction, historical data from the past century indicates that the S&P 500 has consistently bounced back, advising against hasty selling of index-tracking ETFs.
3. 3. The modern S&P 500, established in 1957, has grown significantly by 14,830% since its inception, while its predecessor index dates back to 1923.
4. 4. Over the past century, combining its history with its predecessor, the S&P 500 has rallied an astounding 56,780%, turning a $1,000 investment into $568,800.
5. 5. The S&P 500's century-long performance significantly outpaced the 1,766% inflation rate, demonstrating its ability to preserve and grow purchasing power through various economic challenges.
6. 6. The stock market's resilience is evident in its continuous rise as the U.S. economy expands and stronger companies naturally replace weaker ones within the index.
7. 7. When the next market crash occurs, the smartest strategy for investors is to either do nothing or buy more stocks, leveraging the market's historical tendency to recover and grow.