-
The benchmark S&P 500 Index has enjoyed strong growth over the past 15 years, and especially over the past three years.
-
Long periods of low interest rates, coupled with the Federal Reserve pumping trillions of dollars into the economy, have played a role.
-
Recently, investors have become increasingly optimistic about artificial intelligence and the stocks that stand to benefit most from it.
-
10 stocks we like better than the S&P 500 ›
Despite some wild swings at times in 2025, stocks have continued to soar, up 16.8% so far this year (through December 5). This gives the baseline S&P 500 Index (SNPINDEX:^GSPC) The index has the opportunity to generate returns of 20% or more for three consecutive years, a feat rarely accomplished over the past century.
Falling interest rates, the economy continuing to avoid recession and the rise of artificial intelligence have combined to create a multi-year bull market that many Wall Street strategists expect will continue.
However, the market remains fragile. Economic conditions are far from ideal, the cost of living is extremely high, and housing is unaffordable for many, making saving for retirement a challenging process. However, interest rates have been extremely low for much of the time since the Great Recession and the Federal Reserve has pumped trillions of dollars into the economy, which can cause asset values to inflate.
If you invested $5,000 in the S&P 500 15 years ago, here’s how much you would invest today.
Amid bloated assets and a high cost of living, the stock market has produced very strong returns, boosting investors’ retirement accounts and disposable income, although perhaps not as much as they would have been if adjusted for actual inflation.
As you can see above, $5,000 invested in the S&P 500 15 years ago is now worth over $28,000, a performance that crushes the returns generated by the S&P 500. Russell 2000 and S&P 400 Indexrepresenting mid-cap stocks. This $28,000 also represents a compound annual growth rate of over 12% over the past 15 years.
Before buying S&P 500 stocks, consider the following factors:
this Motley Fool Stock Advisor The analytics team has just identified what they believe is 10 Best Stocks Investors can buy now… and the S&P 500 isn’t one of them. Here are 10 stocks that could generate big returns in the coming years.
consider when Netflix This list was created on December 17, 2004… If you invested $1,000 when we recommended, You will have $540,587!* or when NVIDIA This list was created on April 15, 2005… If you invested $1,000 when we recommended, You will have $1,118,210!*