The S&P 500 has had a strong year so far, up almost 14% as of the end of September. While there are concerns about a potential market bubble, historical data shows that in years with strong rallies like 2025, the fourth quarter tends to perform well. Only in two instances since 2000 has there been a double-digit decline in Q4.

In 2012, the S&P 500 was up at least 10% by the end of September, but declined by 1% in the fourth quarter. Most other years with strong rallies saw positive returns in Q4. However, factors like uncertainty around new tariffs could impact market performance in the near future.

Investors with a long-term horizon can benefit from investing in S&P 500 index funds, which have historically averaged around a 10% annual return. For those needing to withdraw funds in the near term, reducing downside risk may be advisable. While the market outlook for the rest of 2025 remains uncertain, staying invested in the S&P 500 is still a solid option for most investors.

Read more at Yahoo Finance: Can the S&P 500 Continue Soaring Higher After a Strong Q3? Here’s What History Says.