Here are analysts’ S&P 500 predictions for 2025

I S&P 500 it is in the middle of a roaring bull market right now. Over the past five years, the index has risen nearly 90%, helping long-term investors like me build wealth.

Wondering what’s in store for the index in 2025? Here’s a look at some of the latest predictions from Wall Street analysts.

More benefits on the horizon?

In the table below, I have put the 2025 S&P 500 forecasts from seven major financial institutions. Note that these are year-end goals:

Looking at the figures on the table, Deutsche Bank has a maximum prediction of 7,000. The average for the seven firms, however, is 6,624.

Given that the S&P 500 is trading at 6,047 today, it is clear that the consensus view is that the bull market will continue. Looking ahead, it seems that firms expect the index to rise another 10% or more over the next year and a bit.

I have strength

I think that makes sense. First, economic conditions in the US will likely be healthy next year (Donald Trump favors the economy).

Second, we are in the midst of a powerful technological revolution, which is helping many companies generate high and low growth. Additionally, there is room for the market rally to extend.

Of course, there are no guarantees that the bull market will continue. In the short term, the stock market is very unpredictable. If we were to see an unexpected ‘black swan’ event, the index could fall.

How to get exposure

But let’s say the US market will go up next year. What are the best ways to get exposure to it? Of course, one option to consider is an S&P 500 index fund such as Vanguard S&P 500 UCITS ETF (LSE: WAKE UP).

This product” is designed to track the index. So if the S&P 500 goes up, it should go up too.

It’s worth noting that with this ETF, exchange rates can affect returns for UK investors because it tracks a US index. For example, if the S&P 500 were to rise 10% in 2025 but the pound gained 3% against the US dollar, the return to UK investors would only be around 7% (ignoring trading and platform fees).

Overall though, there’s a lot to like about this product, in my opinion. Not only does it provide exposure to all the best stocks in the S&P 500 (eg. an apple, Microsoft, Nvidiaetc) but annual fees are very low at 0.07%.

Of course, another option that should be considered is investing in individual stocks of the S&P 500. This approach is very risky, but there are opportunities for big gains.

I have no doubt that there will be plenty of stocks that outperform the S&P 500 by a wide margin next year and deliver gains of 20%, 30%, 50%, or more. Some US stocks I work on include Amazon, CrowdStrikeagain Uber (if you’re looking for more US stock ideas you can find plenty here at The Motley Fool).

I will point out that nothing will stop you from investing in a tracker fund again buying a few individual stocks in hopes of generating a higher profit. This is what I do, and the strategy has worked well for me in recent years.