Can the S&P 500 Continue Rallying in 2025? Here's What History Says

The S&P 500 has been red-hot during the past two years. In both 2023 and 2024, the index rose by about 24%. That's well above its long-term average of about 10% per year. Many stocks are trading at their all-time highs, particularly in tech, where the excitement around artificial intelligence (AI) remains incredibly strong. But there are question marks about whether the market has overheated or not, and if a correction -- or, dare I say, crash -- is around the corner. Big single-year returns aren't uncommon in the stock market, but what about when the S&P 500 is coming off two straight years of impressive gains? Here's what history says could happen this year.To collect a wider range of data points, I'll focus on periods where the stock market rose by more than 15% in back-to-back years. That still signifies two strong bullish years and can provide some possible insights into how the market typically performs afterward. With data going back to 1928, there have been 10 instances where such a strong bullish trend has occurred.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool