In Reply to: Average 401K performance this year posted by russsmith on October 16, 2026 at 15:02:27
increases were historic levels from the pandemic.
The stock market’s gains of 23% in 2023 and 24% in 2024 were exceptionally strong, fueled in part by the post-pandemic recovery, resilient consumer spending, and the AI boom. Consumers had accumulated substantial savings and were eager to spend. It was an unusual economic environment, not a typical market cycle.
Annual gains of that magnitude are well above the S&P 500’s historical average and have very little to do with Biden personally. Markets are driven by a complex mix of economic conditions, corporate earnings, interest rates, and investor expectations—not simply by whoever occupies the White House.
Frankly, the market has performed above average this year as well. The important distinction is that Trump disrupted what had been a strong bull market, meaning investors could have seen even greater gains without the uncertainty and volatility his policies introduced.