After a big first year, expect smaller and choppier gains from the rest of this bull market

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It was on March 23, 2020 when the S&P 500 hit its bottom after the Covid crisis sent the equity benchmark tumbling 30% in 22 days.

The bull market was officially declared when the S&P 500 wiped out its pandemic losses and reached a record closing high on Aug. 18, then the beginning of a bull cycle was traced back to the market trough with the benefit of hindsight.

"This is the first bull market that any of us have been through where it's been essentially manufactured by the government and by the Fed," said Tom Essaye, founder of Sevens Report. "The huge stock gains didn't come organically. They were essentially decreed by the government taking on enormous amounts of debt and deficits to spur economic activity. That does change the outlook going forward.

Meanwhile, inflation expectations are rising amid the historic economic reopening and massive stimulus, making it harder to justify stocks' lofty valuations. The concern has manifested itself in the year-to-date underperformance of the tech-heavyas higher inflation and interest rates erode growth-oriented companies' future earnings.

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Big first year? Makes no sense, market is only up 4%, thats not a lot

Say what now? Like, you think this is a new bull market?

Way to set the table fk you

France Dernières Nouvelles, France Actualités