Historical data shows S&P 500 rises significantly after periods of downside volatility
From Yahoo Finance: 2025-04-22 03:06:00
The stock market has historically been the top wealth creator, outperforming real estate, bonds, and commodities. However, this comes with volatility as seen with recent corrections in major indexes.
Factors fueling market volatility include Trump’s tariff announcements, high stock valuations, and rising Treasury bond yields. These uncertainties can impact global trade and inflation levels.
The S&P 500 is experiencing significant volatility, with 18 large down days in 2025 so far. Historically, periods of high volatility have led to excellent buying opportunities and strong returns for long-term investors.
The S&P 500’s historical data shows that after periods of large downside volatility, the index has risen significantly in the following years. This trend suggests that current market fluctuations could present a buying opportunity for optimistic long-term investors.
Consideration for investing in the S&P 500 should be based on historical data and long-term investment goals. The Motley Fool Stock Advisor team offers insights into 10 potential high-return stocks, highlighting past successes such as Netflix and Nvidia.