The stock exchange has done something since 1957. History says it gives a signal for the next year for S & P 500.
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July 14, 2025
The S & P 500 handed one of the largest quarterly rallies in its own story history, reaching 25% and reached a new record on Thursday.
History shows that the S & P 500 has always been higher than 25% next year next year, on average, on average.
Inflation or tariffs could still distract the rally, but the long-term future seems bright.
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This year has been a wild walk for investors. After calling a new all new time in the middle of February S & P 500(Snpindex: ^ GSPC) The tariffs used by the overcoming administration, which will stimulate economic growth, have been declining immediately.
However, since its early anniversary, the market has staged a remarkable recovery, reaching 26% and on Thursday, on July 10 in the last three months.
In the historical context, the S & P 500 has only made 25% in its own story history of 25%. The data show that the previous example, the benchmark brings additional profits in the next 12 months, creating a double-digit return. Let’s look at what this means is for investors.
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The S & P 500 caused 25% or more returns, only five times in three months, as the benchmark index was introduced in 1957. His research shows that during the 12 months following each of these occasions, S & P has always risen, and noticed two-digit digit profit EverytimeA number
This table shows the years in which the S & P 500 caused 25% (or more) achievements within three months and within 12 months of return.
S & P 500 25% (+) rally
S & P 500 12-month change
1975
18%
1982
20%
1999
12%
2009
19%
2020
39%
Medium
21%
Data source, CARSON GROUP. Table by Author.
According to the table, the S & P 500 refunds 21% returns in the 12 months following a period, when 25% arrived within three months. After the context, in 1957, 10% finally returned. This shows that the market performance was much better than these rallies.
To quote the old Wall Street Axiom, “Past Performance is not a guarantee of future results.” This is stated in considering the existing data and its historical context, history students can make aware of the market trajectory over the coming year. The S & P 500 was closed on Wednesday, so the index should clean 7,033 to complete the low end of historical range in July.
Gross Analysts are already on board. How my partner’s Trevor Jennewine shows 2025 year-end Targets of S & P 500 range from 5,500 (below about 12% below about 12%) to 7,007, about 12% higher than current levels. It seems to assume that the market has a fairly good fire for the next year to hit that threshold.
Given historical instability and uncertainty, it is easy to understand why investors can be sure that the current stock exchange rally will continue. After all, again, again, the separated tariffs have been in flow for a long time, and the fight against persistent inflation is far from regulatory. Moreover, the experts have contradictory opinions on the final impact of the mentioned tariffs of inflation.
It is like to emphasize that the President plans to impose programs this week to impose double digit tariffs on a number of countries if the United States has no trade agreements on August 1.
The instability of the markets and the above-mentioned tariffs is concerned about what the deadline may have, but long-term investors tend to watch the future through another lens.
This means that the market will continue to make a profit. Not at all. Keep in mind that examples of historical return last 12 months. Although the data suggests that the market will go to double-digit profit for next year, I expect a wider market in the coming weeks and months, and I will not be surprised if historical unstable investors continue.
In addition, by increasing your portfolio, in good times and bad, most of the predictions come out of the underwear and help investors develop discipline.
History shows that the stock exchange has earned a 10% return on average in the last 50 years. This clearly indicates that in the long run the focus of the introduction of success is the best way to success. Even if the story repeats itself.
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The stock exchange has done something since 1957. History says it gives a signal for the next year for S & P 500. originally published by Motley Fool
