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Opinion: Why a proposal to ‘save’ Social Security by investing $1.5 trillion in the stock market won’t work - MarketWatch

1. Congress is proposing to invest $1.5 trillion from Social Security in the stock market. 2. S&P 500 outperformed Social Security returns significantly over the past decades. 3. Concerns arise about funding, as the government borrows $5 billion daily. 4. The investment may not address the Social Security crisis expected by 2034. 5. The proposal lacks clarity on how funds will be managed and invested.

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FAQ

Why Bullish?

Investing Social Security funds in the market could boost stock prices. Historical precedence shows sustained investment can yield strong returns.

How important is it?

The proposal could shift $1.5 trillion to equity markets, impacting investor sentiment. However, existing deficits and management concerns temper its immediate efficacy.

Why Long Term?

Long-term effects depend on successful implementation and stock market performance over decades. Investors should weigh potential market shifts over time.

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