{"id":9165,"date":"2024-12-06T19:24:43","date_gmt":"2024-12-06T19:24:43","guid":{"rendered":"https:\/\/finderica.com\/the-sp-500-is-up-nearly-30-in-2024-dont-expect-it-to-continue\/"},"modified":"2024-12-06T19:24:43","modified_gmt":"2024-12-06T19:24:43","slug":"the-sp-500-is-up-nearly-30-in-2024-dont-expect-it-to-continue","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=9165","title":{"rendered":"The S&#038;P 500 is up nearly 30% in 2024. Don&#8217;t expect it to continue"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107347614\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Traders react after the closing bell on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 13, 2023.\u00a0<\/p>\n<p>Brendan Mcdermid | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>However you feel about the world these days, you&#8217;re likely happy with the stock market.<\/p>\n<p>The <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">S&amp;P 500<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> is up nearly 30% this year so far.<\/p>\n<p>But it&#8217;s important for investors to temper their expectations and to remember that years like this one are rare, said Cathy Curtis, a certified financial planner and the founder and CEO of Curtis Financial Planning in Oakland, California.<\/p>\n<p>&#8220;Investors should know that the stock market has an average annualized return of over 10% for decades,&#8221; said Curtis, a member of CNBC&#8217;s Advisor Council.<\/p>\n<p>&#8220;The past year has seen growth way over this amount and it would be highly unusual for that to continue for a multi-year timeframe,&#8221; she added.<\/p>\n<p><strong>More from Personal Finance:<\/strong><br \/>The must-have gift of the season may be a &#8216;dupe&#8217;<br \/>Here are the best ways to save money this holiday season<br \/>28% of credit card users are still paying off last year&#8217;s holiday tab<\/p>\n<p>Indeed, the S&amp;P 500&#8217;s return has been larger than 2024&#8217;s in only 17 out of the last 74 years, Morningstar Direct found. For example, in 1954, the S&amp;P 500 swelled more than 52%. It returned around 31% in 1989.<\/p>\n<p>(The financial services firm looked at how many years, from 1950, the index increased by more than 29.24%, its exact return so far for 2024, as of the end of Wednesday.)<\/p>\n<p>Multiple years in a row of significant gains are even rarer.<\/p>\n<p>The S&amp;P 500 rose more than 24% in 2023, and if the index rises this year more than 20%, that would be only the third time that there have been back-to-back gains of that size in the past century, according to Deutsche Bank.<\/p>\n<\/div>\n<div class=\"group\">\n<p>That market returns are unlikely to be as high going forward doesn&#8217;t mean you should sell your stocks, Curtis added.<\/p>\n<p>&#8220;The best way to benefit from the annualized return is to stay in the market,&#8221; she said.<\/p>\n<p>Ups and downs are the signs of a healthy market \u2014 and you&#8217;ll benefit if you stay invested.<\/p>\n<p>Years like this one can help to make up for periods where the market is deep in the red. The S&amp;P 500 was down over 36% in 2008. In 2022, it dropped over 18%.<\/p>\n<p>&#8220;We have &#8216;recency bias&#8217; so there is a tendency to expect the recent performance to continue,&#8221; said Allan Roth, a CFP and accountant at Wealth Logic, based in Colorado Springs, Colorado.<\/p>\n<p>&#8220;But reversion to the mean is statistically far more likely,&#8221; Roth said.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2024\/12\/06\/the-sp-500-is-up-nearly-30percent-in-2024-dont-expect-it-to-continue-.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Traders react after the closing bell on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 13, 2023.\u00a0 Brendan Mcdermid | Reuters However you feel about the world these days, you&#8217;re likely happy with the stock market. The S&amp;P 500 is up nearly 30% this year so far. But<\/p>\n","protected":false},"author":1,"featured_media":9166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[313,475,903],"class_list":{"0":"post-9165","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-continue","9":"tag-dont","10":"tag-expect"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/9165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9165"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/9165\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/9166"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}