According to Compounding Quality (@QCompounding), historical data from 1957 to 2006 shows that the 20% cheapest stocks, based on price-earnings ratio, outperformed the S&P500 by 3.2% per year. This value investing strategy highlights how selecting undervalued assets can deliver superior returns compared to broader indices. For crypto traders, this data-driven approach suggests that focusing on undervalued digital assets—using similar valuation metrics where applicable—could enhance portfolio performance and risk-adjusted returns. Source: Compounding Quality Twitter, May 15, 2025.

According to StockMKTNewz, the S&P 500's year-by-year returns since 1994 reveal significant cycles of growth and decline, with notable gains in years like 1995 (+38.1%) and key downturns in 2000-2002. This historical data highlights periods of risk-on and risk-off sentiment in traditional markets, which often correlates with shifts in crypto market activity. For crypto traders, recognizing these macro trends is crucial for anticipating liquidity inflows or outflows, as institutional investors frequently adjust their exposure to digital assets in response to S&P 500 performance. Source: StockMKTNewz (Twitter, May 13, 2025).