tag without repetition in the body. Check for any template-like content and replace it with original phrasing. Make sure the humor is understated and idiomatic, not forced. Also, verify that the emojis are only added once at the end if needed. Let me piece this together step by step, ensuring each section flows naturally, maintains the core message, and infuses the required literary style without losing the portfolio manager’s analytical edge.End of Thought (29.78s) Trump’s Market Pendulum: 3 Historical Whispers for 2026 During President Trump’s first term, Wall Street’s major indices performed with the vigor of a bureaucrat finally finding a form in triplicate. The Dow Jones Industrial Average (^DJI +0.48%), S&P 500 (^GSPC +0.65%), and Nasdaq Composite (^IXIC +0.81%) surged by 57%, 70%, and 142% respectively, as if the market had mistaken itself for a Ponzi scheme with infinite legs. In 2025, the indices delivered an encore performance, rising 13%, 16%, and 20% respectively. Yet, like a government audit that only notices the ink stains after the ledger is closed, history’s pendulum began its inevitable swing. While lower interest rates and AI’s glittering promise shimmer on Wall Street, three historical correlations suggest 2026 might favor the art of the crash. History’s Rhymes and Market’s Riddles Let us not pretend there exists a single economic oracle capable of predicting the market’s next move. If such a crystal ball existed, it would have been buried under 300 pages of disclaimers by now. Yet, history offers us breadcrumbs-sometimes burnt, sometimes golden-that investors might chew with cautious optimism. Advertisement The S&P 500’s 16% gain last year marked its third consecutive year of 15%+ rallies. Historically, this pattern has occurred thrice: 1995-1999 (Dot Com Bubble), 2019-2021 (stimulus-fueled euphoria), and 2023-2025 (AI hype). Each time, the market’s crescendo was followed by a crash, as if the economy were a government building: grandly constructed, then quietly abandoned. FUN FACT 🚨: S&P 500’s 3rd consecutive 15%+ gain echoes history’s most dramatic market crescendos. The Dot Com Bubble and 2019-2021 rallies? Both preceded sharp declines. A pattern, perhaps, or a bureaucratic oversight? Barchart (@Barchart) January 1, 2026 The 1990s boom was followed by a 49% S&P 500 plunge and a 78% Nasdaq collapse. The 2019-2021 rally gave way to a 2022 bear market, erasing 25% of the index’s value. History, it seems, is less a linear narrative and more a bureaucratic memo: repetitive, cyclical, and frustratingly opaque. Second, valuation concerns loom like a poorly translated contract. Howard Marks of Oaktree Capital warned that buying the S&P 500 at a 23x P/E ratio yields 10-year returns between +2% and -2%. As of Jan. 5, 2026, the forward P/E nears 23, suggesting the market’s price tag resembles a government auction: lofty, but not without hidden flaws. Howard Marks: “When you buy the S&P 500 at a 23x P/E, your 10-yr annualized return has always fallen between +2% and -2%, IN EVERY CASE, EVERY CASE!” Patient Investor (@patientinvestt) December 20, 2025 Third, the midterm election year introduces the chaos of a bureaucratic shuffle. Carson Group’s Ryan Detrick notes that midterms correlate with larger corrections, averaging 17.5% since 1950. In 2020, Trump’s first term saw a 20% peak-to-trough dip. Investors, ever the optimists, now face the prospect of congressional gridlock-a scenario as predictable as a government shutdown. Midterm years: a theater of political acrobatics and market tremors. Stocks recover, yes, but only after a year of bureaucratic limbo. Ryan Detrick, CMT (@RyanDetrick) November 16, 2025 The Two-Sided Coin of Time Three straight years of gains have left investors clinging to hope like a bureaucrat clinging to a photocopier. Yet history is a two-sided coin-shiny on one side, tarnished on the other. Corrections, bear markets, and crashes are not villains but necessary punctuation marks in the story of capital. Bespoke Investment Group’s data reveals that bull markets outlast bear markets by a factor of three. From 1929 to 2023, 14 bull markets endured longer than the longest bear market (630 days), while the average bear market bottomed in 9.5 months. Crestmont Research adds that any 20-year holding of the S&P 500 would have yielded a positive return-proof that patience is the best hedge against panic. A new bull market confirmed. The S&P 500’s 20% rebound from 2022 lows is a testament to the market’s resilience-or perhaps its stubbornness. Bespoke (@bespokeinvest) June 8, 2023 Even if 2026 delivers a correction, the long-term trajectory remains bullish. Markets, like bureaucracies, are messy but ultimately functional. They stumble, they delay, but they rarely collapse entirely. The key, as ever, is to navigate the red tape with wit and a well-timed coffee break. And so, dear reader, as we peer into the kaleidoscope of 2026, remember: the market’s pendulum swings, but it never stops. One must dance with it, not fight it. 🦉