The S&P 500 Could Do Something It's Only Done Once In a Century. Here's What That Might Mean.

Group 1 - The S&P 500 has shown strong performance since emerging from a bear market in late 2022, with potential to achieve total returns of at least 20% for three consecutive years, a feat only accomplished once since 1928 [1][2][8] - In 2023 and 2024, the S&P 500 recorded total returns of approximately 24% and 23%, respectively, and is currently at around 14% for the year, indicating a positive trend compared to the 12% increase at the same time in 2023 [2][8] - Exceptional returns over three years may indicate an overvaluation bubble, reminiscent of the late 1990s before the tech bubble burst, suggesting caution for future market performance [3][8] Group 2 - The unpredictability of the stock market makes it challenging to forecast future performance, even for experts, highlighting the importance of historical context in understanding market cycles [5] - The Buffett Indicator, which compares the total value of U.S. stocks to GDP, is currently at approximately 221%, the highest level recorded, suggesting potential overvaluation in the stock market [6][7] - The last time the S&P 500 achieved three consecutive years of over 20% returns was in the late 1990s, raising concerns about the current market conditions and the possibility of being "playing with fire" [8]