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Why markets keep rising

The continued growth in companies’ sales and earnings is driven by the ever-increasing number of people who use their goods and services, plus the inflationary nature of price, money and economic system

    • The S&P 500 has registered a peak-to-trough fall of 18.8 per cent in 2025. But it now stands at a historic high, and has generated a positive 7.5 per cent return for the year.
    • The S&P 500 has registered a peak-to-trough fall of 18.8 per cent in 2025. But it now stands at a historic high, and has generated a positive 7.5 per cent return for the year. PHOTO: AFP
    Published Mon, Jul 7, 2025 · 05:13 PM

    [SINGAPORE] When markets suddenly fell following the Tariff Wars announced by US President Donald Trump in April, we shared some perspective to help alleviate the worries and concerns of investors. Yes, we talked about how global stock markets – and especially the US stock market – have ridden out volatility and price fluctuations, and continued to grow and rise over long periods of financial history.

    However, when markets are down, it is a great opportunity to get a bit philosophical about investing and also think about why you are investing. So we also talked about the longer and broader perspectives that are not normally discussed in these circumstances, but are highly relevant.

    We talked about the history of the universe and how the universe has never stopped expanding. In fact, scientists think that it expands at an accelerating pace. We brought up the fact that the human race has continued to expand with the human population reaching new historic highs crossing eight billion in November 2022. It took all of human history to reach one billion at the turn of the 19th century, and just another 123 years to double to two billion. Since then, it has taken less than 100 years to quadruple to eight billion. Human population growth has accelerated.

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