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The S&P 500 Is Up 83% in This Bull Market! Here’s Why I’m Still Buying
Ruby Layram
13th Oct 2025
Three years into the current bull market, and the S&P 500 has already climbed around 83%! For many, that sounds like “too far, too fast.” But for me, it’s a reason, not an excuse, to continue topping up my exposure. While some investors start to look for the exit, here’s why I’m still buying the S&P 500 and why I think the bull run still has some way to go.
Let’s take a look at what could go right (or wrong), and some alternative index ideas to balance your portfolio.
Why I believe that the market still has potential
It gets to a point in every bull market where investors start to ask, “are we near the end?” and this can cause people to sell early.
Don’t let the fear of “what ifs” stop you from making the most of further gains! Here’s why I believe that the market still has potential.
1. History shows big runs can get much bigger
83% is impressive. But things can get bigger!
The 1987–2000 bull run is a famous example. Over roughly 13 years, U.S. equities soared by ~507% (before dividends) in nominal terms. That reminds me that even when markets feel extended, the “run” phase can last far longer than most expect.
In fact, this current 3-year bull is only the sixth since 1974 to make it that far. Most don’t survive, and those that do often enter new regimes of leadership. The fact we’ve passed that threshold already is a hurdle cleared, not necessarily a ceiling.
Moreover, analysts and strategists remain optimistic. Some believe that, with AI, innovation, and continued capital flows, U.S. equities still have runway ahead. For example, forecasts pushing the S&P toward new highs in 2026 suggest more than just a few more percentage points.
2. Favourable economic conditions and innovation
Another reason that I think the US bull market could continue is that economic conditions are relatively strong (or at least, strong for a continued bull run!)
- Rate cuts & accommodative monetary policy: If central banks ease further, real yields stay low, which tends to favour equities (stocks) over bonds.
- Capital investment & AI infrastructure: Ongoing capex in data centres, cloud, semiconductors, and computing power could sustain earnings growth.
- Fiscal stimulus potential: Infrastructure spending, energy transitions, or government initiatives could inject further liquidity into markets.
- Corporate earnings resilience: Many companies have adapted, with leaner cost structures, digital transformation, and pricing power.
- Global flows & diversification: The U.S. still attracts capital globally, and many foreign investors see it as a safe “growth anchor.”
Why Some Investors Might Be Sceptical or Hesitate
Of course, staying bullish doesn’t mean ignoring risk. Here’s why some investors might be sceptical to continue investing in the US stock market.
- Prices are already high: When the market’s up 83%, stocks can start to look expensive. If company profits slow down or costs rise, prices might fall back to more “normal” levels.
- Too much riding on a few big names: A handful of giant tech companies are doing most of the heavy lifting right now. If one of them stumbles, it could drag down the whole index.
- Politics and global events: Changes to taxes, new regulations, trade tensions, or geopolitical flare-ups can all shake investor confidence and cause sudden dips.
- Interest rates and inflation surprises: If inflation rises again or central banks pause their rate cuts, higher bond yields could tempt money away from stocks.
- Markets just need a breather: After long bull runs, it’s normal for investors to take profits or move to safer assets. That doesn’t mean the story’s over, just that momentum might slow for a while.
Given all that, I’m not all-in. My approach is measured: keep adding, but not over-allocate, and always keep hedges and alternative exposure.
Alternative Indexes to Consider
If you want growth exposure but less dependency on U.S. mega-caps, these are interesting index tracking funds to watch:
| Index / ETF | What It Offers & Why It’s Attractive |
|---|---|
| Nasdaq-100 / QQQ / Invesco QQQ Trust | Heavy tilt to tech and growth. In 2026 forecasts, many believe this index could outperform the broader S&P. |
| Expanded/Tech Sector ETFs (e.g. iShares Expanded Tech) | More concentrated tech angle than S&P. For example, an iShares tech-growth ETF delivered ~11.6% annual return since inception vs lower for the S&P. |
| MSCI EAFE / International Developed Markets ETFs | Lower valuations overseas; some stocks less correlated to U.S. risk. Morningstar suggests alternatives comparing to “expensive S&P”. |
| Thematic / Innovation / AI ETFs | Focused on AI, cloud, semiconductors, taps into the drivers behind the current bull market. |
| Broad Growth / Equal-Weight ETFs | Reduces dominance of megacaps by giving more weight to mid-caps with upside potential. |
These aren’t perfect replacements; they carry higher volatility, sector risk, or concentration risk, but they offer diversified upside if U.S. Tech stumbles or the S&P overheats.
Top tips for investing in the bull market
The current bull market is an exciting time for investors who were lucky enough to get in early (and may have already seen 83% returns!). If you want to continue investing, here are some top tips:
- Use dollar cost averaging to gradually increase exposure and remove the need to ‘time’ the market.
- Diversify with ‘safer’ assets that come with less volatility (such as bonds or gold).
- Use a stocks and shares ISA to tax-proof your returns.
- Expect volatility. Don’t freak out on red days!
- Avoid letting your emotions run the show. Be strategic about when you check your portfolio, when you sell and when you buy.
Also read: Everyone’s selling, but why? What this says about investor mindset in 2025
Final thoughts
Yes, the S&P 500’s 83% rise has made a lot of people nervous, and fair enough. But when you look at history, government policy, new tech trends, and where the money’s still flowing, it doesn’t feel like this bull run is done just yet.
I’m still buying, just doing it carefully. Staying invested, keeping some cash on hand, and mixing in a few smart diversifiers.
No one can time the market perfectly. But if I had to choose, I’d rather back steady, long-term growth, with a few safety nets, than sit on the sidelines out of fear!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here, including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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