Making 317% on the S&P 500 With Just 4 Trades

The American economy is a story most of us know well. It went through a massive boom in the '80s, the dot-com frenzy of the '90s that fizzled out in the early 2000s, and the 2008 mortgage crisis that triggered a global recession. More recently, we've all navigated the pandemic. For many, this volatility makes feel intimidating, but it also creates opportunities.

Despite facing serious hurdles like income inequality, a complicated healthcare system, and economic tensions abroad, the U.S. has consistently pushed living standards forward and remained a global leader. It’s this resilience that makes in its markets, particularly the S&P 500, a compelling long-term strategy.

A Patient Approach to the S&P 500

When we analyzed the S&P 500 from 2001 to 2023 using a specific methodology called the Diamond Strategy, something interesting emerged. Over 22 years, the strategy only generated four buy signals. This kind of low-frequency approach is perfect for who don't want to be glued to their screens.

Notably, all of these signals appeared near the market bottoms of 2003 and 2009. During those moments of peak fear, the strategy identified opportunity. What’s equally fascinating is what happen: during the sharp, pandemic-driven market correction in 2020, no buy signal was triggered. For some, is about finding a system that filters out the noise, and this is a perfect example.

The Results Speak for Themselves

So, what was the outcome of this patient approach to ? The results were pretty remarkable. The strategy delivered a total return of 317.4%, with an average purchase price of 1,066.10 on the index. This breaks down to an average annual return of 8.35%, which is the fifth-best performance among all the global indices we analyzed. These long-term gains are the goal of building solid .

It’s incredible to think that a 317% gain came from just four well-timed trades over two decades. This stands in sharp contrast to the high-stress, high-frequency trading that so often leads people to lose money. This philosophy aligns perfectly with Warren Buffett’s famous line: “My favorite holding period is forever.”

Of course, the decision to sell an asset is always a personal one based on individual financial needs. But in this controlled analysis, the power of a disciplined, long-term view on is crystal clear. It shows that sometimes, the best move is to do nothing at all.