Investing - Theory, News & General • What goes up most often goes up higher

A good article by Ben Carlson, What Happens After a 20% Up Year in the Stock Market?. Time and time again on this forum, we see people hesitate to invest because the market is up. He points out that since 1928, there have been 34 calendar years1 where the S&P 500 has finished up 20% or more (not counting 2023, he wrote this before the year ended. He points out:

• The stock market was up 22 out of the 34 years following a 20% gain (65% of the time).

• The average return following a 20% up year was 8.9%.

• There were 19 double-digit up years.

• There were just two double-digit down years (1936 and 2022).

There's other good discussion in the short article, again making it clear that when it comes to predicting stocks for the coming year, nobody knows nothing.

Statistics: Posted by Elric — Wed Jan 10, 2024 8:39 pm — Replies 0 — Views 31

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