--- title: Why 2023 Could Be a Big Year for Stocks, According to Historical Trends description: In any light, 2022 was a bad year for the stock market. The good news for investors in 2023 is that stocks often rebound after a downturn. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Education - Health and Wellness - Housing - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-01-02T18:18:47.000Z' modified: '2024-01-10T14:30:16.000Z' section: Economy and Politics tags: - News - stocks word_count: 354 canonical: https://money.com/2023-big-year-stocks-historical-trends/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Illustration of a stock graph that converts into a question mark](https://img.money.com/2023/01/News-What-happens-after-stocks-bad-year.jpg?crop=0px%2C138px%2C2880px%2C1620px&quality=85) By most measures, 2022 was an awful year for [stocks](https://money.com/how-to-buy-stocks/). The [S&P 500 Index](https://money.com/how-to-invest-in-sp500/) lost roughly 20% of its value over the course of the year, and other financial assets like [bonds](https://money.com/buying-bonds-great-investing-move/) and [crypto](https://money.com/what-is-cryptocurrency/) didn’t fare well, either. Some experts are [predicting more market declines](https://money.com/stock-market-predictions-2023/) in the beginning of 2023, but there’s still reason for optimism. “As bad as 2022 has been for investors, there is a silver lining,” [writes](https://www.carsongroup.com/insights/blog/lets-look-at-stocks-down-two-years-in-a-row/) Ryan Detrick, chief market strategist at the Carson Group. “Back-to-back declines in the S&P 500 are rarer than you may think.” Detrick crunched the data and found that since 1950, stocks have only fallen in back-to-back years three times — once during the recession of 1973 and 1974 and twice during the tech bubble in the early 2000s. Detrick says he doesn’t see scenarios like those heading into 2023. There have been 20 years since 1950 when the stock market ended the year with a negative return. The Carson Group found that after those years, the S&P 500 gained an on average of 15% over the next 12 months and was higher 80% of the time. After a positive year for stocks, on the other hand, the S&P gained 7% on average and was higher a little less than 70% of the time. That data underscores a critical but counterintuitive principle for long-term investors: It’s especially important to [keep investing when stocks are down](https://money.com/why-keep-investing-when-stocks-down/) rather than sit on the sidelines. If you’re able to afford it, investing during a bad year is like buying at discount prices. You’re setting yourself up for even bigger returns when the market recovers. “The 2022 downturn has set the stage for a much-improved long-term investing environment,” Philip Straehl, head of capital markets and asset allocation for Morningstar’s Investment Management group, wrote in the firm’s 2023 outlook. [Here's What Experts Predict for the Stock Market in 2023 — and What Investors Should Do](https://money.com/stock-market-predictions-2023/) [The Fed Signals More Rate Hikes Are Coming — Here’s What It Means for Investors](https://money.com/fed-interest-rate-hike-december-2022/) [Why It's So Important to Keep Investing When Stocks Are Down](https://money.com/why-keep-investing-when-stocks-down/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/2023-big-year-stocks-historical-trends/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Stock Market", "item": "https://money.com/stock-market/" }, { "@type": "ListItem", "position": 4, "name": "Why 2023 Could Be a Big Year for Stocks, According to Historical Trends" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/2023-big-year-stocks-historical-trends/#webpage", "url": "https://money.com/2023-big-year-stocks-historical-trends/", "name": "Why 2023 Could Be a Big Year for Stocks, According to Historical Trends", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-01-02T18:18:47.000Z", "mainEntity": { "@id": "https://money.com/2023-big-year-stocks-historical-trends/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/2023-big-year-stocks-historical-trends/#breadcrumb" }, "dateModified": "2024-01-10T14:30:16.000Z" }, { "@type": "NewsArticle", "headline": "Why 2023 Could Be a Big Year for Stocks, According to Historical Trends", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/01/News-What-happens-after-stocks-bad-year.jpg?crop=0px%2C138px%2C2880px%2C1620px&quality=85", "width": 1012, "height": 569, "caption": "News-What-happens-after-stocks-bad-year" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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