Commercial message: The first 6 months of 2025 are behind us and the US stock indices have had a very wild ride. Stock markets have been growing significantly since the election of Donald Trump late last year and reached new highs early this year. maxThe market had high hopes for Donald Trump, who announced the deregulation of many industries and positive changes in the area of taxes.
However, a sobering moment came shortly after his inauguration, as the ongoing tariff war, coupled with concerns about the US economy, caused a sharp sell-off in stock markets. The most famous index, the S&P 500, from maxim weakened very quickly by approximately 20%. Previous sell-offs in US stocks were characterized by a strengthening of the US dollar in most cases, which mitigated losses for investors in euros or korunas.
This time, however, the situation was the opposite. Since the beginning of the year, the US dollar has also weakened significantly, which has led to losses in euroin both Czech and Czech koruna terms, the situation gradually began to turn around from April, the market gradually stopped taking the tariff threats seriously, shares rose by more than 25% and by the end of the first half of the year they reached new highs again. maxYou can see the development of the S&P 500 index in the image below.
Source: XTB investment app
Stock markets on maxHowever, for many investors, this means waiting to invest. Buying at the top doesn't intuitively make sense to people. However, if we look at the data, we find that waiting to invest doesn't pay off.
Most investors fail to time their market entries successfully over the long term, and often end up missing out even more while waiting. Legendary investor Peter Lynch once said that investors lost far more money waiting for corrections than in the corrections themselves.
This claim is supported by data from the American bank JP Morgan. It shows that if you had invested over a 1988-year horizon since 1, you would have achieved an average return of 11,7%. However, if you had invested only when the market was at maximu, the yield would be up to 14,6%. At a three-year horizon, the average yield was 39,1%, while at maximech it is 50,4% and at a 5-year horizon it is 71,4%, while at maxIn my case it is 78,9%.
Source: FactSet, JP Morgan
So what should the average investor take from this data? In particular, the fact that the markets on maxshould not be a reason to stop investing. Timing the market doesn't pay off for most people, and historical returns for markets are maximech is even higher than the overall average.
He plays cards. euroinvestors also note that the US dollar is still very weak. While US stocks are priced in dollars at maxHowever, in dollars, euros or crowns they are still about 10% lower.
To learn more about investing or to open an account and start investing, you can find all the information you need at https://www.xtb.com/cz.
Investing is risky. Invest responsibly.
