The recent performance of the S&P 500 has captured the attention of investors, with the index projected to yield a remarkable 17% gain in 2025. This achievement positions 2025 as potentially the third consecutive year of returns exceeding the historical average of approximately 10% annually over the past five decades. Despite strong performance, a prevailing sense of unease has emerged among investors, many of whom fear that the market is on the brink of a downturn. This trepidation has led some to contemplate selling their stock holdings in anticipation of a market crash.
Historical data offers a framework for understanding market trends and potential future movements. Statistically, the stock market has traditionally increased in value two out of every three years. This trend suggests a high likelihood that the market will continue its upward trajectory into 2026. Analogies drawn from lottery scenarios illustrate the merit of maintaining investments; if the odds of winning two out of three times are favorable, continuing to invest may yield positive long-term results.
Data from Vanguard reveals that bear markets—characterized by declines of 20% or more—tend to be brief, averaging only 15 months and occurring a few times per decade. More commonly, investors experience corrections between 10% and 20%, which typically last for just three to four months. Hence, the periods of growth in the market vastly outnumber the downturns, making a strong case for a buy-and-hold strategy.
Highlighting specific stocks also sheds light on potential investment strategies. Companies like Tesla, Devon Energy, Occidental Petroleum, Nvidia, and Palantir Technologies have dominated the market as top performers in consecutive years. Data indicates that purchasing shares of these leading stocks immediately following their standout performance often results in outperformance relative to the S&P 500 in the subsequent year—an impressive success rate of 80%, with only Occidental Petroleum underperforming.
Currently, Sandisk stands out as a potential influential player in 2026, having already achieved an extraordinary increase of more than 500% year-to-date. The company’s recent spin-off from Western Digital and inclusion in the S&P 500 positions it advantageously within the market. With expectations for substantial growth driven by data center demand, Sandisk reported a remarkable 23% surge in revenue in its first fiscal quarter and anticipates over 40% growth in the second quarter of fiscal 2026.
The ongoing shift towards enhanced data storage solutions reflects broader industry trends that indicate a sustained demand for Sandisk’s products, particularly within large-scale data center operations. This positions Sandisk favorably for continued success in the upcoming year.
Overall, the takeaway for investors is clear: staying invested in the stock market remains a strategic imperative. While market fluctuations are inevitable, historical trends underscore the likelihood of sustained growth over time, emphasizing the importance of a long-term investment perspective amid short-term uncertainty.
