10 Reasons Stocks Don't Go Up Forever

10 Reasons Stocks Don't Go Up Forever

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Do you have the gift for understatement? You might say: “The stock market has done very well over the past couple of years.”

As of Aug. 30, the S&P 500 index was up about 18.4% year to date. It gained 26.3% in 2023. 

Yet some investors have short memories. It is easy to make the case that stocks are the place to be because “they only go up.”

If you drive down a deserted street late at night, you might see a series of green traffic lights ahead of you. You relax, expecting a quick, smooth trip. Eventually you hit some red lights. It just happens.

It has been said that individual investors do less well than money managers or stock market indexes because they buy and sell at the wrong times, based on emotion. Put another way, they try to time the market.  

Here are 10 reasons why the stock market can’t go up forever.

Bryce Sanders, president of Perceptive Business Solutions Inc., provides high-net-worth client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor,” is available on Amazon. 

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