Wall Street Analysts Are Slashing Their S&P 500 Targets for 2025. Here's What You Should Do, Based on Decades of History.
The S&P 500 (SNPINDEX: ^GSPC) is coming off back-to-back annual returns of more than 25% in 2023 and 2024. Investors have only seen such a strong two-year run on one other occasion since the index was established in 1957, and that was in 1997 and 1998, during the dot-com bubble. Most Wall Street analysts came into 2025 expecting the S&P 500 to deliver another strong return, until President Donald Trump unveiled heavy tariffs on imported goods from virtually all of America's trading partners. Investors immediately feared these new taxes could trigger inflation and an economic slowdown, so they flocked to safe assets like cash. The flight from risk sent the S&P plunging by as much as 19% from its record high, and though it has recovered some ground since then, it's still down by around 8% as of this writing.A long list of Wall Street banks and investment firms have since slashed their S&P 500 target for 2025. But history offers some clear guidance for navigating stock market corrections, so here's what investors might want to do next.Continue reading
The S&P 500 (SNPINDEX: ^GSPC) is coming off back-to-back annual returns of more than 25% in 2023 and 2024. Investors have only seen such a strong two-year run on one other occasion since the index was established in 1957, and that was in 1997 and 1998, during the dot-com bubble.
Most Wall Street analysts came into 2025 expecting the S&P 500 to deliver another strong return, until President Donald Trump unveiled heavy tariffs on imported goods from virtually all of America's trading partners. Investors immediately feared these new taxes could trigger inflation and an economic slowdown, so they flocked to safe assets like cash. The flight from risk sent the S&P plunging by as much as 19% from its record high, and though it has recovered some ground since then, it's still down by around 8% as of this writing.
A long list of Wall Street banks and investment firms have since slashed their S&P 500 target for 2025. But history offers some clear guidance for navigating stock market corrections, so here's what investors might want to do next.
