Over the past couple of years, the U.S. market has surprised many with its remarkable performance. In 2024, the S&P 500 closed the year with an impressive 23.3% gain, which followed a similar 24.2% rise in 2023. When you look at the combined gains, it’s the best two-year streak of the 21st century, as noted by the Financial Times. That’s a huge deal. This strong performance has people in the Beansprout community buzzing with questions about the potential for even more growth. As President-elect Donald Trump gets ready to step into office, investors are also reflecting on how his policies might impact the market. Here, we’ll dig into the reasons behind the U.S. market’s strength and discuss whether investing in U.S. stocks is still a smart move.
### Looking Back at 2024’s Performance
The S&P 500, which serves as a benchmark by tracking 500 top companies and accounting for roughly 80% of market capitalization, really shone in 2024 when measured against other global indices. U.S. markets left major European indices trailing behind, showing a level of growth hardly matched anywhere else in the world.
