The S&P 500 has been going through a rough patch for the last few weeks. The index has already lost 10% of its value, and many are calling it a mere correction.
However, it seems that the bearish trend in the S&P 500 is coming to an end as some stock sectors are showing recovery signs.
At the same time, it's tough to give a definite timeframe on when the S&P 500 will turn bullish again. This has do to with the ever-changing US politics and uncertainty over what's coming next from the Trump's government.
If we look at the long run, there's no doubt that the S&P 500 is highly likely to rise. So, we can say that the recent downtrend is just a temporary disruption.
Even today, the USA remains the strongest economy, which means we can also expect great performance from the S&P 500.
On average, a 10% gain is seen in the US stocks on annual basis. So, at the very least, we can expect a 10% upside in the S&P 500.
According to The Economy Forecast Agency, the index can go as high as 6232 - 7170 points. The S&P 500 can reach these levels by March 2026. Based on this forecast, the S&P 500 can gain an upside of 9.8% to 26.3%.
So, based on the forecasts, the S&P 500 is a good option to invest in the year 2025. If someone invests $1000 in the S&P 500, it could become $1100 - $1260 by the end of the year 2025.
However, its worth mentioning that the USA is going through a period of uncertainty. The disruptive policies of the US government and the geopolitical tension can cause some major mayhem in the S&P 500 index.
So, for those who don't want to deal with a lot of headaches, they can also skip investing in the S&P 500. Another option is to look at individual stocks in the S&P 500 and find the ideal option.