Why the S&P 500 Still Looks Like a Smart Bet

The S&P 500 (SNPINDEX: ^GSPC) was a surefire winner for investors over the past two years -- it roared higher through a bull market, advancing 24% and 23%, respectively, in 2023 and 2024. But in recent months, the benchmark's performance soured, and the S&P 500 even briefly entered bear territory back in April.The reason for such a turnaround after two strong years: Investors worried that President Donald Trump's plan to roll out tariffs on imports could result in a surge in prices -- and that could weigh on companies' costs and the consumer. As a result, corporate earnings and the general economy might suffer.Such a slowdown would represent bad news for high-growth companies that led last year's market gains -- like artificial intelligence (AI) giants Nvidia and Palantir Technologies. Growth players rely on consumer and corporate spending as well as favorable borrowing conditions to expand, so any signs of economic weakness hurt demand for their shares.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool