What S&P 500 Gains of 9.5% in the First Half Signal for the Rest of the Year
Investors normally expect about 10% from the market in any given year, but all of that already showed up in the first half...
Overview
On average, investors generally expect the market to provide roughly a 10% return each year. In fact, if you look at the long-term history of the S&P 500 index (SNPINDEX: ^GSPC), that's about what you get, assuming you reinvest dividends. So what should an investor make of the fact that the first six months of 2026 saw the S&P 500 index advance 9.5% on a price-only basis and nearly 10.2% with dividends reinvested?
The first issue to address regarding market returns is that it includes bull and bear markets. A bull market is when the market goes up 20%, while a bear market is when it falls 20%. Bull and bear markets represent moves much larger than 10% and highlight that the market does not just go up at a steady, comfortable pace. The markets can be, and often are, quite volatile.
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Originally published at www.fool.com.