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Motley Fool: 70% Odds of Stock Market Crash in 2026. Market: Nah.

Posted June 23, 2026

"History says the S&P 500 will fall 18% at some point in 2026 and the index will finish the year roughly unchanged. That means the odds of a stock market correction in 2026 are approximately 70%."

— Motley Fool analyst

February 4, 2026

What Actually Happened

The Motley Fool laid out the historical playbook for midterm election years: midterm elections create uncertainty, uncertainty tanks stocks, S&P 500 averages just 1% returns and suffers an average 18% intra-year drawdown. The odds of a correction? 70%. Sound scary. There was just one problem with this thesis: it forgot to account for the fact that AI spending apparently overrides everything else in 2026. By late June, the S&P 500 was up 7%+ year-to-date—not down. The 70% odds of a correction? Still waiting. The expected flat returns? Already exceeded 7x over. Turns out the stock market can read, and it skipped the part about midterm election jitters when it saw AI and Fed rate cuts were on the menu.

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