How Much Higher Will the S&P 500 Go This Year After Jumping Nearly 19%? Here's What History Shows

We're in 2023 already with the S&P 500 up nearly 19% since January 1. While the index has undoubtedly had a strong start to the year, investors may wonder how much higher it can go.

History suggests that the S&P 500 could continue to rise in the coming months.

Since 1950, the S&P 500 has had an average annual return of 10%. However, the index has also experienced periods of significant volatility. For example, in 2008, the S&P 500 lost over 37% of its value.

Despite these periods of volatility, the S&P 500 has consistently trended higher over the long term. This is due in part to the fact that the index is composed of some of the largest and most successful companies in the world. These companies have a long history of innovation and growth, which has helped the S&P 500 to weather economic downturns and continue to rise.

Of course, there is no guarantee that the S&P 500 will continue to rise in the coming months. However, history suggests that the index is likely to continue to trend higher over the long term.

Three reasons make the S&P 500 go up:

• The U.S. economy is growing.

• Corporate earnings are rising.

• Interest rates are low.

Three reasons the S&P 500 might go down:

• The U.S. economy enters a recession.

• Corporate earnings decline.

• Interest rates rise.

Conclusion:

Ultimately, the direction of the S&P 500 will be determined by a number of factors, including the economic outlook, corporate earnings, and interest rates. However, history suggests that the index is likely to continue to trend higher over the long term.