Riding the S&P 500 Wave During A Bull Market

Why 20% Gains Shouldn't Surprise You

Hello, fellow investors and market enthusiasts! Today, we're diving into the fascinating world of the S&P 500 during an up year. Whether you're a seasoned trader or just starting to dip your toes into the investment waters, there's something here for everyone. So, grab your surfboard, and let's ride the wave of market gains together.

Imagine the stock market as a vast ocean. Some days, the waters are calm, and the waves are gentle. Other days, the storm clouds gather, and the waves crash with ferocity. But today, we're focusing on those glorious days when the sun is shining, and the waves are perfect for surfing—those are the up years of the S&P 500.

Many of us have heard the long-term average return of the stock market is around 8-10%. This figure, however, is like averaging the weather over a year, including both sunny days and thunderstorms. These thunderstorms (aka down years and bear markets) are what bring that longterm average down.

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In reality, during an up year, the S&P 500 often surfs well above double-digit gains. The median return during these years is over 19%, and the average return exceeds 22%.

As we stand today, the S&P 500 has already gained 22%, aligning perfectly with the historical average for an up year. And guess what? We still have two months left in the year! It's as if we're on a surfboard, riding a wave that's carrying us effortlessly towards the shore.

Now, you might be wondering, "Can this wave get any bigger?" The answer is a resounding yes. History shows that in some up years, the S&P 500 has soared beyond 30% gains. It's like catching that perfect wave that just keeps building, taking you further than you ever imagined.

But, as any seasoned surfer knows, the ocean is unpredictable. With an election right around the corner, the market's waters could shift. So, what's your take on the market? Will we continue to ride this wave to new heights, or will the tides turn?

In the world of investing, understanding the rhythm of the market is crucial. Whether you're a novice or a pro, remember that every wave presents an opportunity. So, keep your eyes on the horizon, stay balanced, and enjoy the ride.

Until next time, keep your investments smart and your spirits high.

Happy investing!

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