The S&P 500 is set for its third consecutive annual gain, with a potential increase of over 15% this year. Factors contributing to this growth include excitement about AI stocks and optimism about a lower interest rate environment. While concerns like Trump’s import tariffs and AI bubble fears have impacted momentum, the index continues to reach record highs.

Investors may be questioning whether to buy stocks before the new year. AI stocks like Nvidia and Microsoft have been driving gains, supported by strong revenue growth from AI products. Additionally, the Federal Reserve’s decision to lower interest rates and potential future cuts have been positive for stock performance.

Historically, the S&P 500 has shown gains in December, with a phenomenon known as the “Santa Claus rally.” While there have been times when the index fell in December, overall, investing during this month has proven beneficial. Long-term investment strategies and a focus on the potential of stocks can lead to significant gains.

The Motley Fool’s expert team occasionally issues “Double Down” stock recommendations for companies expected to perform well. Past examples include Nvidia, Apple, and Netflix, which have delivered substantial returns. These alerts are available through Stock Advisor, offering unique investment opportunities that may not come around again soon.

Read more at Yahoo Finance: Should You Really Buy Stocks Before the New Year? Here’s What History Says.