Over the past year, the stock market has experienced some extreme volatility. While various market indices made a remarkable recovery after their steep downturn last spring, some investors are worried that a market bubble has formed and is about to burst.
A whopping 66% of investors said they believe the market is already in a bubble, according to a recent survey from E*TRADE, while another 25% said they expect the market is approaching bubble territory.
If we are in a stock market bubble and that bubble pops, we would likely experience a significant market downturn. There are ways for investors to guard against this and one option can help you protect your savings. That option? Buy S&P 500 index funds.