In 2025, many lessons were learned in investing. A meeting with an accountant led to adjustments in contributing to a self-employed 401(k) plan and adding to an S&P 500 index fund, with a subsequent market fall and recovery.

The S&P 500 sees significant turnover, with one-third of companies replaced since 2015, signaling potential disruption trends affecting market incumbents.

Economic growth slowed in 2025, but the stock market rallied to record highs, indicating a disconnect between market performance and economic indicators.

Despite historical trends of weak returns following high valuations, the stock market continues to defy expectations, emphasizing the importance of earnings in driving stock prices.

As we enter 2026, managing expectations for market returns is crucial, given the unpredictability of market performance and the rarity of average returns. Expectations should be tempered based on historical trends and market conditions.

Read more at Yahoo Finance: 8 lessons for investors from 2025