History Suggests Bull Market Still Has Room to Run

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S&P 500 News

NASDAQ Composite,CBOE Volatility Index

Stocks Analysis by Investing.com (Calogero Selvaggio) covering: S&P 500, NASDAQ Composite, CBOE Volatility Index. Read Investing.com (Calogero Selvaggio)'s latest article on Investing.com

Despite rising inflation, stocks historically thrive during such a phase, and the current correction is nothing to be worried about.rose to +4.77 percent year-on-year in March from +3.94 percent in February. This marks the fifth month out of the last six where it has accelerated on a year-on-year basis, now reaching its fastest pace since April 2023.

The chart displays the largest yearly decline in the S&P 500 and its average decline, standing at 14.2 percent. This year, in 2024, it's merely 2.5 percent, marking one of the lowest drops ever, akin to the slump observed in 1995. Comparatively, last year, despite a robust rally, stocks underwent a 10.2% correction.

Simultaneously, the Global Equity Risk-Love index, currently at the 86th percentile, suggests that a short-term pause in equity markets wouldn't be surprising. Considering multiple indicators, valuations, fundamentals, and sentiment, there is support for a potential short-term pullback. Currently, the ratio levels are at high points of optimism, suggesting increased short-term risk.

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