Will 2025 be a good year for stocks?
The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics. "Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania," Capital Economics said.
That suggests the S&P 500 could trade to 6,000 by August 2025, and to as high as 6,150 by November 2025. But in the short-term, amid the ongoing weakness in stocks, Suttmeier said investors should keep an eye on potential support levels for the S&P 500 at 5,000 as well as a range from 4,600 to 4,800.
According to experts, our one-year forward objective for the Nifty 50, which is set for March 2025, is 24,800. This represents a 10% upside against the long-term predicted returns of around 14%.
- Analysts see big potential for these drugs over the next 12 months.
- Fiverr International (FVRR): FVRR to could double as freelancing grows.
- Lithium Americas (LAC): The rebound of lithium prices make LAC strong.
Years Averaged (as of end of February 2024) | Stock Market Average Return per Year (Dividends Reinvested) | Average Return with Dividends Reinvested & Inflation Adjusted |
---|---|---|
30 Years | 10.222% | 7.495% |
20 Years | 9.74% | 6.96% |
10 Years | 12.681% | 9.555% |
5 Years | 14.543% | 9.879% |
The Yardeni Research president predicted the S&P 500 could jump to 6,500 by 2026, implying a 30% gain from the benchmark index's current levels.
Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.
Equity targets | Year-end 2025 targets | Previous year-end 2024 targets |
---|---|---|
S&P 500 Index | 5600 – 5800 | 4800 – 5000 |
S&P 500 EPS | $260 | $230 |
Russell Midcap Index | 3700 – 3900 | 3200 – 3400 |
Russell Midcap EPS | $190 | $160 |
Period (start-of-year to end-of-2023) | Average annual S&P 500 return |
---|---|
5 years (2019-2023) | 15.36% |
10 years (2014-2023) | 11.02% |
15 years (2009-2023) | 12.63% |
20 years (2004-2023) | 9.00% |
- Bajaj Finance Ltd.
- Titan Company Ltd.
- Varun Beverages Ltd.
- Cholamandalam Investment & Finance Company Ltd.
- Tube Investments of India Ltd.
- SRF Ltd.
- Solar Industries India Ltd.
- Persistent Systems Ltd.
Will my investment double in 10 years?
The Rule of 72 is focused on compounding interest that compounds annually. For simple interest, you'd simply divide 1 by the interest rate expressed as a decimal. If you had $100 with a 10 percent simple interest rate with no compounding, you'd divide 1 by 0.1, yielding a doubling rate of 10 years.
Ticker | Company Name | |
---|---|---|
1 | CELH | Celsius Holdings |
2 | SMCI | Super Micro Computer |
3 | NVDA | Nvidia |
4 | ELF | e.l.f. Beauty |
S.No. | Company | Industry/Sector |
---|---|---|
1. | Tata Consultancy Services Ltd | IT - Software |
2. | Infosys Ltd | IT - Software |
3. | Hindustan Unilever Ltd | FMCG |
4. | Reliance Industries Ltd | Refineries |
Stocks are considered long-term investments. This is, in part, because it's not unusual for stocks to drop 10% to 20% or more in value over a shorter period of time. Investors have the opportunity to ride out some of these highs and lows over a period of many years or even decades to generate a better long-term return.
Though there is no ideal time for holding stock, you should stay invested for at least 1-1.5 years. If you see the stock price of your share booming, you will have the question of how long do you have to hold stock? Remember, if it is zooming today, what will be its price after ten years?
Long-term investments almost always give you more gains and profits and they outperform the market when the investors try and hold on to their investments and time them accordingly. Secondly, the biggest advantage of holding a stock for the long term is that it is less costly.
Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher. While some valuations are stretched, there is still room for the market to grow if earnings estimates are met.
- DaVita Inc. ( ticker: DVA)
- DraftKings Inc. ( DKNG)
- Extra Space Storage Inc. ( EXR)
- First Solar Inc. ( FSLR)
- Gen Digital Inc. ( GEN)
- Microsoft Corp. ( MSFT)
- Nvidia Corp. ( NVDA)
- SoFi Technologies Inc. ( SOFI)
Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year. The healthcare sector is expected to generate a market-leading 17.8% earnings growth in 2024, while the information technology sector is expected to lead the way with 9.3% revenue growth.
Key Takeaways. While holding or moving to cash might feel good mentally and help avoid short-term stock market volatility, it is unlikely to be wise over the long term. Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss.
Will 2024 be a bull or bear market?
Economic growth actually accelerated above its 10-year average in 2023. That resilience, coupled with a fascination about artificial intelligence (AI), changed investors' collective mood. The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official.
Credit spreads remain very tight, and the yield you can earn when adjusted for duration favors high-quality intermediate bonds. So, investors are not really being paid to take on credit or interest rate risk.” Others have said that 2024 might be the time to invest toward the longer end of the risk-return spectrum.
Gilreath, partner and founder of Sheaff Brock Investment Advisors, is confident and sees a bright economic and other market future ahead. He believes the current bull is likely to continue galloping for years to come, pushing the Dow Jones Industrial Average above 40,000 by 2025.
To some investors, this might seem unlikely. The Dow Jones Industrial Average, an index that has astonished with its ascent over the past decade, likely will continue to astonish through the 2020s, rising to 50,000 by 2027.
To reach 50,000, the Dow wouldn't even need to double — it would require a 31.6% gain from the 38,000 level. If the DJIA companies only earned the current 1.77% dividend yield, it would take 15.6 years for the index to reach the 50,000 mark.
References
- https://www.angelone.in/knowledge-center/share-market/how-long-should-you-hold-a-stock
- https://goldsilver.com/blog/heres-how-long-it-really-takes-to-recover-from-stock-market-crashes/
- https://www.fidelity.com/learning-center/trading-investing/new-bull-market-2024
- https://www.nirmalbang.com/knowledge-center/stock-holding-period.html
- https://investorplace.com/2024/03/the-2025-double-3-stocks-poised-to-deliver-100-gains-in-just-12-months/
- https://www.nerdwallet.com/article/investing/how-to-invest-during-a-bear-market
- https://www.investopedia.com/articles/investing/052216/4-benefits-holding-stocks-long-term.asp
- https://money.usnews.com/money/retirement/articles/should-retirees-follow-the-100-minus-your-age-rule-for-stock-allocation
- https://www.morningstar.com/news/marketwatch/20240420276/this-chart-shows-why-the-stock-market-rally-should-broaden-out-later-this-year
- https://www.screener.in/screens/300202/stocks-with-good-1-month-returns/
- https://www.5paisa.com/news/icici-securities-predicts-nifty-50-to-reach-24800-by-march-2025-top-picks-include-lt-bhel
- https://www.screener.in/screens/104735/consistently-growing-stocks/
- https://www.livemint.com/market/stock-market-news/day-trading-stocks-to-buy-anand-rathi-expert-recommends-three-shares-to-buy-today-april-22-11713750497302.html
- https://www.reuters.com/markets/europe/what-is-bear-market-2022-06-15/
- https://admiralmarkets.com/education/articles/shares/the-best-performing-stocks-in-history
- https://www.linkedin.com/pulse/how-long-might-bear-market-recovery-take-tppfg
- https://www.thebalancemoney.com/u-s-stock-bear-markets-and-their-subsequent-recoveries-2388520
- https://www.schwab.com/learn/story/how-to-recover-from-big-trading-loss
- https://www.5paisa.com/blog/fundamentally-strong-penny-stocks-in-india
- https://tradethatswing.com/average-historical-stock-market-returns-for-sp-500-5-year-up-to-150-year-averages/
- https://kwbwealth.com/blogs/what-could-cause-the-dow-to-reach-50000
- https://www.screener.in/screens/801676/6-months-double/
- https://www.forbes.com/advisor/investing/bear-market-history/
- https://www.bankrate.com/investing/bear-market-guide-all-ages/
- https://markets.businessinsider.com/news/stocks/stock-market-prediction-bull-signal-suggests-big-gain-august-2025-2024-4
- https://www.samco.in/knowledge-center/articles/best-stocks-to-buy-in-march-2024/
- https://www.nasdaq.com/articles/how-long-will-this-sp-500-bear-market-last-heres-what-history-says
- https://www.shiksha.com/online-courses/articles/bear-market-stages-and-associated-factors/
- https://finance.yahoo.com/news/now-good-time-invest-stock-113000086.html
- https://www.indiainfoline.com/markets/hot-stocks
- https://www.investopedia.com/articles/investing/030716/one-thing-never-do-when-stock-market-goes-down.asp
- https://www.indmoney.com/stocks/category/penny-stocks
- https://www.investopedia.com/terms/b/bearmarket.asp
- https://www.ig.com/uk/thematic-basket/bear-markets
- https://money.usnews.com/investing/articles/best-value-stocks-to-buy-now
- https://www.smallcase.com/collections/long-term-stocks-to-buy/
- https://www.citizensbank.com/learning/bull-market-vs-bear-market.aspx
- https://capex.com/en/overview/dow-jones-price-prediction
- https://www.nasdaq.com/articles/hot-picks%3A-7-stocks-wall-street-expects-to-double-in-2024
- https://www.fool.com/investing/how-to-invest/stocks/when-to-sell-stocks/
- https://www.tickertape.in/blog/nifty-50-stocks-with-1-month-high-return/
- https://www.linkedin.com/pulse/benefits-bear-market-shaun-t-scott-auhie
- https://www.edwardjones.ca/ca-en/market-news-insights/guidance-perspectives/investing-through-recessions
- https://www.investopedia.com/articles/basics/09/cash-is-king.asp
- https://awealthofcommonsense.com/2024/01/new-all-time-highs-after-a-bear-market/
- https://www.livemint.com/market/stock-market-news/lok-sabha-election-2024-bel-ntpc-nhpc-to-m-m-experts-recommend-these-11-stocks-to-buy-for-longterm-11711174772868.html
- https://www.morningstar.com/portfolios/how-long-will-it-take-market-recover
- https://www.investors.com/ibd-university/how-to-sell/taking-profits/
- https://www.fool.com/investing/stock-market/types-of-stocks/growth-stocks/
- https://www.indmoney.com/stocks/category/high-return-stocks
- https://financhill.com/blog/investing/when-will-the-bear-market-end
- https://www.wallstreetsurvivor.com/starter-guides/find-penny-stock/
- https://www.screener.in/screens/334630/highest-returns-in-5-year/
- https://finance.yahoo.com/u/yahoo-finance/watchlists/most-active-penny-stocks/
- https://www.investopedia.com/best-undervalued-stocks-8550572
- https://www.moneyshow.com/articles/daytraders-28139/
- https://uk.advfn.com/trading/red-hot-penny-shares
- https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp-500-could-soar-30-by-2026-market-vet-says-2024-2
- https://ragingbull.com/kb/how-to-make-money-with-penny-stocks/
- https://smartasset.com/investing/what-is-a-bear-market-in-real-estate
- https://groww.in/blog/what-should-you-do-with-your-money-when-the-bear-market-strikes
- https://www.investopedia.com/8-ways-to-survive-a-market-downturn-4773417
- https://www.schwab.com/learn/story/bear-market-now-what
- https://www.fool.com/investing/2024/03/27/3-stocks-that-can-double-again-in-2024/
- https://finance.yahoo.com/news/why-bull-market-2024-just-180300707.html
- https://time.com/personal-finance/article/how-to-invest-in-penny-stocks/
- https://ethis.co/blog/top-4-money-mistakes-to-avoid-in-a-bear-market/
- https://www.usatoday.com/money/blueprint/investing/best-penny-stocks/
- https://www.stash.com/learn/how-long-do-bear-markets-last/
- https://www.businessinsider.com/personal-finance/bear-market-vs-bull-market
- https://www.equitymaster.com/stock-screener/fastest-growing-penny-stocks
- https://www.nerdwallet.com/article/investing/average-stock-market-return
- https://www.fool.com/terms/b/bear-market/
- https://www.screener.in/screens/797657/stock-doubling-every-3-years/
- https://www.mstock.com/articles/10-best-shares-to-buy-today-for-long-term
- https://finimize.com/content/what-will-sp-500-return-over-next-10-years
- https://www.tickertape.in/blog/best-long-term-stocks-nifty-500/
- https://awealthofcommonsense.com/2020/03/how-long-does-it-take-to-make-your-money-back-after-a-bear-market/
- https://www.bankrate.com/investing/what-is-the-rule-of-72/
- https://www.fool.com/investing/how-to-invest/bear-market-stocks/
- https://www.cnbc.com/2024/02/16/sp-500-could-hit-6500-by-end-2025-says-capital-economics.html
- https://www.businessinsider.com/personal-finance/recession-save-more-cash-strategies-2022-12
- https://www.quora.com/How-long-should-you-invest-in-a-companys-stock-if-you-want-to-make-a-lot-of-money-from-it
- https://www.forbes.com/advisor/investing/best-growth-stocks/
- https://www.investopedia.com/terms/b/bear.asp
- https://www.investopedia.com/ask/answers/06/investduringbearmarket.asp
- https://www.investopedia.com/updates/penny-stocks-risks-rewards/
- https://www.troweprice.com/personal-investing/resources/insights/how-much-cash-should-i-have-on-hand.html
- https://www.nasdaq.com/articles/this-stock-market-indicator-has-been-100-accurate-since-1957.-it-signals-a-big-move-in-the
- https://money.usnews.com/investing/articles/best-performing-stocks-of-the-year
- https://www.warriortrading.com/how-high-can-a-penny-stock-go/
- https://www.hcplive.com/view/the-dow-will-probably-hit-50000-by-2027
- https://money.com/hold-cash-bear-market/
- https://www.ig.com/en/thematic-basket/bear-markets
- https://www.wellsfargoadvisors.com/research-analysis/reports/policy/2025-targets.htm
- https://www.fool.com/investing/stock-market/basics/crashes/
- https://trendlyne.com/stock-screeners/price-based/top-gainers/3-month/index/BSE500/bse-500/
- https://money.usnews.com/investing/articles/best-growth-stocks-for-the-next-ten-years
- https://www.creditkarma.com/investments/i/bear-market-investing-strategies
- https://www.linkedin.com/pulse/what-does-recession-mean-housing-market-bestrealestatemarket-jsskc
- https://m.economictimes.com/markets/stocks/news/top-10-stocks-to-buy-before-sensex-grows-from-75000-to-1-lakh/articleshow/109234159.cms
- https://www.hartfordfunds.com/practice-management/client-conversations/managing-volatility/bear-markets.html
- https://www.forbes.com/advisor/investing/stock-market-forecast-2024/
- https://www.schwab.com/learn/story/how-to-invest-bear-market
- https://www.marshmma.com/us/insights/details/should-i-reduce-my-401k-contribution-when-the-market-is-down.html
- https://www.indmoney.com/articles/top-5-stocks-to-invest
- https://money.usnews.com/investing/articles/best-long-term-stocks-to-buy
- https://tradethatswing.com/best-performing-stocks-in-the-last-year-3-5-and-10-years/
- https://www.investopedia.com/timeline-of-stock-market-crashes-5217820
- https://univest.in/blogs/multibagger-penny-stocks-for-2025/
- https://www.thinkadvisor.com/2024/02/13/bond-investing-in-2024-everything-for-advisors-to-know/
- https://www.livemint.com/market/stock-market-news/yes-bank-shares-rebound-after-retracing-over-20-from-52-week-high-buy-or-wait-11708581644311.html
- https://www.screener.in/screens/325238/fast-growing-stock/