Average short interest across the S&P 500 consumer discretionary stocks has decreased to 2.45% of shares float in end-December, from 2.54% a month earlier. Consumer Discretionary Select Sector SPDR Fund (XLY) has been up 30.

Today, history offers us reason to be excited about 2025, suggesting that the S&P 500 is likely to soar as it's done in previous periods. But even if it doesn't, by taking the steps I've mentioned, your portfolio still could advance this year -- and most importantly, over the long run.

The U.S. stock market broadened its rally this week, with all S&P 500 sectors booking weekly gains, as investors appeared relieved by interest rates in the bond market reversing some of their recent startling climb.

It's not easy for a stock investor to beat the S&P 500 in any given year, and it's even harder to do that regularly. Even Warren Buffett, who has beaten the market by huge margins over decades, hasn't managed to do so every year.

The S&P 500 and Nasdaq have both felt pressure as shares of major tech companies came under pressure Monday. Investors continue to keep a close eye on rising Treasury yields, which heighten worries about valuations, particularly for some of the market's most highly valued names.

The "Magnificent Seven" is a group of seven tech-orientated companies -- Microsoft (NASDAQ: MSFT), Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla. All seven crushed the S&P 500 in 2023, and all but Microsoft beat the index again in 2024.

(k) index funds may be more heavily weighted toward technology stocks than investors realize, which can expose them to hidden sector-specific risks