​2025 Another Record Year

As 2025 comes to a close, the market has enjoyed another record year with the S&P gaining 17%. It has been quite a three-year run for the index. With 2023 up 26.2%, 2024 up 18.9% and 2025 another remarkable year. This gives the index its 7th best 3-year return on record. Although the vast majority of portfolios failed to match the S&P 500s’ return due to its’ heavy concentration of a handful of stocks, it still has been a remarkable 3-year run for most investors.

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With 2023, 2024 and 2025 now in our rear-view mirror what should we expect for 2026? Despite our reluctance to try and predict the markets short-term moves, we do feel the S&P 500 index is due for a pullback after the so-called Santa Claus rally. However longer term, we remain in the bullish camp and continue to believe this bull market will broaden out to include the more cyclical stocks, more value-oriented stocks and small cap stocks.  Earnings have continued to come in above expectations, and the Federal Reserve continues to signal lower interest rates which is jet fuel for this bull market.

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We continue to believe in this bull market and avoid the temptation to try and time the top. Stay invested in stocks with strong earnings, healthy balance sheets, dependable dividends, and good fundamentals for the long term.