Looking at the returns of major indices in the US stock market over the past 30 years, we have experienced several corrections and declines despite a long-term upward trend.

We will compare the index levels of the Dow Jones Industrial Average (DJIA), S&P 500, and Nasdaq Composite in 1995, 2005, 2015, and 2025.

Year      Dow Jones      S&P 500    Nasdaq
1995    About 5,117      About 615         About 1,000
2005    About 10,717    About 1,248     About 2,100
2015    About 17,425    About 2,043     About 5,000
2025    About 42,099    About 5,810     About 19,199

30-Year Returns Analysis

Dow Jones Industrial Average (DJIA): Increased about 8 times from 1995 to 2025.

S&P 500: Increased about 9.5 times during the same period.

Nasdaq Composite: Increased about 19 times, showing the highest growth rate.

This increase is attributed to factors such as growth centered on technology stocks, economic expansion, and a low-interest-rate environment.

The current market is showing high valuations and a continuous bull market, raising the possibility of corrections.

• S&P 500 recorded increases of 24% and 26% in 2023 and 2024, respectively, showing a continuous bull market. Historically, corrections or declines have occurred after such continuous increases.
  

• Nasdaq Composite is approximately 19,199 as of May 2025, which is about a 19-fold increase compared to 1995. This rapid increase can be interpreted as a sign of overheating similar to the past dot-com bubble.

Therefore, considering the current high valuations and continuous bull market, it is important to prepare for potential corrections.

The US stock market has shown a long-term upward trend over the past 30 years, but has experienced several corrections and declines along the way. The current market situation presents the possibility of corrections due to high valuations and a continuous bull market. Therefore, investors need to pay attention to portfolio diversification and risk management while preparing strategies for market volatility.