The only losing bet on Wall Street: waiting for the end of the world!

The chart in front of you is not just a technical analysis of the S&P 500 index, but a poignant lesson in financial psychology, and a visual embodiment of one of the oldest truths in the world of investing: betting on the "end of the world" is the only bet that always loses in the long run.

The year 2025 was a violent "roller coaster" ride for investors, as they moved from the depths of despair to the heights of euphoria in just a few months, and this chart tells the whole story.

1. First: The Nightmare (February - April 2025) - When Fear Took Over

In the first quarter of the year, the markets experienced a real nightmare.

A violent collapse of 21%: The S&P 500 index plummeted from its peak on February 19 to its bottom on April 7, officially entering a "bear market."

The Psychology of Panic: In those moments, the screens screamed red, the headlines warned of an inevitable recession, and fear was the master of the situation. The prevailing narrative was that "the party was over," that the Fed had lost control, and that the worst was surely to come.

The Result of Fear: Amidst this panic, the "shaky hands" capitulated and sold their positions at the worst possible time - near the bottom - turning paper losses into real and permanent losses.

2. Second: The Rise from the Ashes (April - December 2025) - The 43% Rally that No One Believed