Can Stocks Keep Gaining After Two 20%+ Years?

Investors may be wary after two consecutive years of stock returns above 20%, but history shows that gains can continue.

S&P 500 Index Performance After Back-to-Back Years of 20% Returns or Greater

Year	Returns (%)
Year	Year 1	Year 2	Year 3
1927 and 1928	37.5	43.6	-8.4
1935 and 1936	47.7	33.9	-35.0
1942 and 1943	20.3	25.9	19.8
1950 and 1951	31.7	24.0	18.4
1954 and 1955	52.6	31.6	6.6
1975 and 1976	37.2	23.9	-7.2
1982 and 1983	21.5	22.6	6.3
1995 and 1996	37.6	23.0	33.4
1996 and 1997	23.0	33.4	28.6
1997 and 1998	33.4	28.6	21.0
1998 and 1999	28.6	21.0	-9.1
2023 and 2024	26.3	25.0	?
Average Return (%)			6.7

infographic: Stocks were positive 64% of the time after back-to-back years of 20% returns

As of 12/31/24. Past performance does not guarantee future results. The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. Indices are unmanaged and not available for direct investment. Data source: Morningstar, 1/25.

Talk to your financial professional to make sure you have the appropriate exposure to stocks.

Investing involves risk, including the possible loss of principal.

All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting or legal advice. As with all matters of an investment, tax, or legal nature, you and your clients should consult with a qualified tax or legal professional regarding your or your client’s specific legal or tax situation, as applicable. The preceding is not intended to be a recommendation or advice.

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