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The Dow Jones Industrial Average is on course to hit 60,000 by the end of the decade.
The S&P 500 may be on course to rise above 8000 by the end of the decade.
The S&P 500 stock price index is driven by its earnings per share (EPS), which has been growing mostly between 6% and 7% since the 1950s. EPS could double to $400 by the end of the decade in our Roaring 2020s scenario.
The S&P 500 continues to rise along with its reported earnings per share (EPS). It could get to 8000 by the end of the decade if EPS doubles to $400 with a price-to-earnings ratio of 20.
The S&P 500's trailing price-to-earnings ratio is relatively high, though it has been higher. It seems to fall during and after recessions when investors worry most about weak earnings. It tends to rebound after recession fears have faded.
In the past, geopolitical crises have often been buying opportunities. However, during the crises-prone 1970s, the stock market performed poorly.
The stock market tends to rise no matter who is in the White House and how much they've inflated the federal government's debt. Investors should avoid letting their personal political views influence their investment decisions.
The stock market tends to have more up years than down years. The average annual increase in the S&P 500 price index has been 7.3% since 1928. Of course, dividends have boosted returns over time.
Since 1928, the worst months for stocks on average have been February, May, and especially September. The rest have been up on average.
The length of bull markets varies. They tend to end before recessions and to resume when an economic recovery seems likely.