"The S&P 500 is currently on track to close out 2025 in just under 10 days with a 16% gain, marking three years in a row of double-digit returns, something investors have taken full advantage of. Following 2023's 24.2% return and 2024's 23.3% surge, the index will likely end up with a three-year cumulative gain of around 77.5%. If you were an investor who has stuck to the course, even through all of the early tariff madness, you've likely done pretty well."
"There is no question that this three-year run has been something to celebrate, and it's also very rare. Since the end of World War II, the S&P 500 has only delivered three consecutive years of double-digit returns a total of three times. Each of these previous instances saw investors working with a similar conviction that this kind of momentum will continue indefinitely, and it feels as if the same thing is happening now."
"However, investors should take note that what really happened in each of these situations is a warning sign that, if ignored, could lead to significant risk for your portfolio. A Historical Triple Threat: The S&P 500's Rare Winning Streak Setting aside any concerns for a brief moment, it's a pretty rare thing to see a three-year run of double-digit S&P 500 gains."
The S&P 500 is on track to finish 2025 about 16% higher, marking three consecutive years of double-digit returns following 24.2% in 2023 and 23.3% in 2024. The three-year cumulative gain approaches 77.5%. Such a streak is rare since World War II and has occurred only three previous times. Sustaining these returns requires expanding valuations, strong corporate earnings, sustained investor confidence, and favorable economic conditions. Prior instances during extended winning streaks coincided with investor conviction that momentum would continue indefinitely. Those prior sequences served as warning signs that, if ignored, could expose portfolios to significant downside risk.
Read at 24/7 Wall St.
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