The Stock Market Sounds an Alarm for the First Time in 25 Years. Here's What History Says the S&P 500 Will Do in 2026

The long-run average return of the S&P 500 (SNPINDEX: ^GSPC) is about 7% after both inflation and dividend reinvestment are taken into account. Thanks to tailwinds from artificial intelligence (AI), however, the stock market has been on a historical rally for a few years now.Since 2023, the S&P 500 has generated a return of 21% per year on average -- essentially triple the index's long-term average. While AI remains the market's biggest theme, smart investors are looking beyond soaring stock prices and paying attention to more nuanced valuation indicators.Below, we'll dig into an important metric used to gauge the stock market's health and assess where the S&P 500 could be headed based on historical data.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool