S&P 500: Despite Series of ATHs, Bull Market Still Young in Historical Terms

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S&P 500 Nouvelles

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Stocks Analysis by Investing.com (Ismael De La Cruz) covering: S&P 500. Read Investing.com (Ismael De La Cruz)'s latest article on Investing.com

The S&P 500 quickly recovered from a 5.5% decline and reached an all-time high, validating the uptrend that began in mid-October 2022.

The record high of the S&P 500 validates the uptrend that began in mid-October 2022. According to market canons, a bull market is defined as a rise of more than 20% after a decline of over 20%. The market continues to be driven by two main catalysts: expectations of a Fed rate cut and corporate earnings surpassing market expectations. Barring healthy corrections, the primary uptrend is expected to continue.

For perspective, one dollar invested in stocks in 1802 would be worth $705,000 by 2012. In contrast, that same dollar invested in bonds would grow to $1,780, and in gold, it would be worth less than $5.Bullish sentiment, i.e. expectations that stock prices will rise over the next six months, was unchanged at 40.9% and remains above its historical average of 37.5%.

 

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