Investors are advised to bet on stock market growth in 2025 based on historical patterns.

From Nasdaq: 2024-12-07 08:24:00

The stock market can be overwhelming with various patterns, but one key pattern stands out: the S&P 500 rises two out of every three years, with odds in favor of gains. Betting that the stock market will go up in 2025 is a logical move, as historical patterns show consistent growth.

Investors can miss out on gains by waiting for corrections in the stock market, as exemplified by Tractor Supply’s 33% YTD gains, outpacing the S&P 500’s 27% returns. Legendary investor Peter Lynch warned against preparing for corrections more than necessary, emphasizing the importance of staying invested.

Rather than waiting for corrections, gradual investments in high-quality businesses like Tractor Supply can yield better results using dollar-cost averaging. With a reliable business model, significant market presence, and growth opportunities, Tractor Supply remains a strong investment choice for the long term.

Nvidia’s stock has seen significant growth due to its dominance in GPUs powering AI applications. Despite concerns about competition, Nvidia’s high margins and customer loyalty suggest a strong competitive position. Historical trends indicate that the top S&P 500 stock often continues to rise the following year, pointing to potential growth for Nvidia in 2025. Investors are advised to consider dollar-cost averaging into high-quality businesses like Tractor Supply and Nvidia, with expectations of Nvidia performing well in 2025 after its success in 2024. The Motley Fool’s Stock Advisor team has identified 10 top stocks for potential high returns, excluding Nvidia, which has shown remarkable growth over time.

Stock Advisor offers a blueprint for success, with guidance on portfolio building and regular analyst updates. Since 2002, the service has significantly outperformed the S&P 500, providing investors with valuable insights and two new stock picks monthly. Consider investing in the recommended stocks for potential long-term gains.

Former Whole Foods Market CEO John Mackey, a member of The Motley Fool’s board, has no position in the mentioned stocks. The Motley Fool has positions in and recommends Amazon, Nvidia, and Tractor Supply. It’s important to note that the author’s views may differ from those of Nasdaq, Inc.



Read more at Nasdaq: Will the Stock Market Rise in 2025? Investors Who Ignore This Historical Pattern Do So at Their Own Risk.