The S&P 500 has experienced a remarkable run over the past decade, delivering strong returns despite some challenging years. Here’s a closer look at the year-by-year performance:
- 2015: A flat year, with the S&P 500 down slightly by -0.73%.
- 2016: The index rose by 9.54%, a solid rebound.
- 2017: A strong performance, up 19.42%.
- 2018: A step back, with a loss of -6.24%.
- 2019: A stellar year, up nearly 28.88%.
- 2020: Despite a volatile year, the index gained 16.26%.
- 2021: Another strong year, up 26.89%.
- 2022: A challenging year, down by -19.44%.
- 2023: A significant rebound, gaining 24.23%.
- 2024: Continued strength, with the index up 23.31%.
Looking at this performance, two things stand out: the extraordinary returns over the decade and the occasional years of volatility and decline.
What to Expect Moving Forward
Having seen two consecutive years of over 20% gains, it’s reasonable to temper expectations for the coming year. Market returns may be more modest, or even negative, as periods of strong growth often give way to consolidation. Volatility is also likely to return, with markets reacting sharply to economic news and media narratives.
How This Relates to Your Portfolio
If you’ve been an equity investor during this period, your portfolio is likely at an all-time high, benefiting from exceptional long-term returns. While a pullback or increased volatility this year may feel uncomfortable, it’s important to maintain perspective. Over the past decade, the S&P 500 has delivered outstanding growth, and short-term fluctuations are a natural part of investing.
Why Staying the Course Matters
Trying to time the market—predicting when it will rise or fall—is notoriously difficult and often counterproductive. Instead, taking a long-term view and sticking to your investment strategy is usually the best approach. By mentally preparing for potential volatility, you can reduce emotional reactions and stay focused on your financial goals.
Let’s Talk
If you’re concerned about how market volatility might impact your portfolio or if you want to discuss your investment strategy in detail, feel free to reach out. We’re always here to provide guidance and help you navigate whatever the markets may bring.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.