Look at the $SPY returns over the past decade:
2017: +22%
2018: -4%
2019: +31%
2020: +18%
2021: +28%
2022: -18%
2023: +26%
2024: +25%
2025: +18%
2026: +14% (YTD)
That's 9 positive years out of 10. Average return around +20%. One real drawdown in 2022, and the market just shrugged it off.
This is not normal. This is not sustainable forever. But it's also not a reason to panic or sit in cash waiting for the crash. Markets can stay irrational longer than you can stay solvent.
The real question: are you positioned for both scenarios? If this keeps running, are you participating? If it corrects 20-30%, do you have dry powder and the stomach to add?
Most people will do neither. They'll chase at the top and sell at the bottom. Don't be most people.
2017: +22%
2018: -4%
2019: +31%
2020: +18%
2021: +28%
2022: -18%
2023: +26%
2024: +25%
2025: +18%
2026: +14% (YTD)
That's 9 positive years out of 10. Average return around +20%. One real drawdown in 2022, and the market just shrugged it off.
This is not normal. This is not sustainable forever. But it's also not a reason to panic or sit in cash waiting for the crash. Markets can stay irrational longer than you can stay solvent.
The real question: are you positioned for both scenarios? If this keeps running, are you participating? If it corrects 20-30%, do you have dry powder and the stomach to add?
Most people will do neither. They'll chase at the top and sell at the bottom. Don't be most people.