Will the S&P 500 Decline in 2025? History Says This, and Here's How You Should Prepare for It.

Just a year ago, the S&P 500 (SNPINDEX: ^GSPC) confirmed its presence in a bull market and went on to reach multiple record highs throughout 2024. Optimism about a lower interest rate environment ahead and the potential of artificial intelligence (AI) to revolutionize many industries drove the gains -- and investors piled into stocks that might benefit the most from all of this, including growth and AI players.There's reason to believe this positive momentum could continue, as the Federal Reserve has launched initial rate cuts and AI companies are benefiting from their investments. Still, at the start of this new year, investors remain somewhat cautious, leaving the S&P 500 little changed so far. Concern remains that interest rates won't decline as quickly as some have expected -- and this could weigh on companies, households, and the stock market in general.So, it's logical to wonder whether the S&P 500 will decline in 2025 after two years of gains. To offer us a clue, let's take a look at what history says -- and consider how to prepare for what's ahead.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool