A 20% S&P 500 'three-peat' is unlikely in 2025, market strategist says
Published On Feb 18, 2025, 2:19 PM
Investment analysts suggest that while the S&P 500 has enjoyed significant growth in the past two years (23% in 2024 and 24% in 2023), a similar 20% return in 2025 is highly unlikely. Historical trends indicate that only once have there been three consecutive years with such high returns. Current forecasts predict a more moderate increase of around 12%, driven by solid economic conditions despite potential headwinds such as higher bond yields and inflation concerns. Analysts advise investors to maintain balanced portfolios and remain cautious of overestimating market possibilities.
Stock Forecasts
SPY
Positive
Given the expectation of a lower growth rate for the S&P 500 in 2025, investors should brace for a period of adjustment rather than the exceptional returns witnessed in the last two years. The anticipated growth is still positive, suggesting that core index ETFs may perform steadily, but investors should manage their expectations accordingly.
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