S&P 500 Hits Record High, History Shows Potential for Strong Returns Ahead Despite Looming Recession Risks
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The S&P 500 closed at a record high on Monday, its second straight after a 2-year dry spell without records.
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History shows the index tends to have above-average returns in the year after going a year+ between records.
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The average 12-month gain after such dry spells is 14%, higher than the index's overall annual average.
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The one exception was 2007, followed by the 2008 financial crisis—a warning the Fed must achieve a "soft landing."
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While past performance doesn't guarantee future returns, long breaks between records typically coincide with recessions.