The Stock Market Is Doing Something Seen Just 2 Times Since 1957, and History Is Clear About What Happens Next

The S&P 500 (SNPINDEX: ^GSPC) is widely considered the best benchmark for the overall U.S. stock market. The index advanced 23% in 2024, marking the second consecutive year in which it returned more than 20%. That last happened 25 years ago in 1997 and 1998.Importantly, after the S&P 500 advanced more than 20% in those back-to-back years, the index returned 19% in the third year. If the current situation plays out in the same way, the S&P 500 could have a blockbuster 2025.Unfortunately, a second historical data point provides a crystal clear picture about what (eventually) happens next. The S&P 500 currently trades at valuation so expensive it has been during just two periods in history, and the index ultimately fell sharply following both incidents. Read on to learn more.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool