The Bull Market Roars On: S&P 500 Sets New Record
The S&P 500 has officially soared to a new record high, marking yet another triumph in a bull market that is approaching an impressive three-year milestone. As of today, the index has increased by more than 70% since the current bull market began on October 12, 2022. This remarkable achievement comes during a period of 989 days, according to insights from Bespoke Investment Group.
A Record-Breaking Journey
Historically, this bull market is still in its infancy. To put things into perspective, consider the bull market from 2009 to 2020, which lasted an astounding 3,999 days and yielded a staggering 400% return. And let’s not forget the bull run connected to the aftermath of the 1987 crash, which spanned nearly 4,500 days and produced a breathtaking 582% return.
Although it remains uncertain whether the current market will achieve such dramatic lengths, its resilience in the face of challenges may carve out a distinctive place in the annals of market history.
The Narrow Escape from a Bear Market
What’s particularly noteworthy about this bull market is its near brush with disaster. The S&P 500 fell to a low on April 8, closing 19.8% below its previous record high—dangerously close to the 20% threshold that technically defines a bear market.
Analyst Frank Gretz from Wellington Shields aptly remarked: "It’s been a remarkable recovery. The credentials for a low were there, so I wasn’t surprised at the low, but the extent of the recovery has been astonishing."
An Encouraging Outlook
The current S&P 500 bull market, which kicked off in October 2022, is nearly at the 1,000-day mark, and the upward momentum shows no signs of fading. Gretz points to the broad participation in this recent upswing—especially from economically sensitive companies like Parker-Hannifin—as keen indicators that this bull run can continue its ascent.
However, caution remains prudently advised. The fundamental outlook for stocks is still mired in uncertainty, particularly regarding tariffs and the Federal Reserve’s interest rate policy. Recently, the chief investment office of UBS Global Wealth Management reiterated a neutral outlook for the stock market, albeit with a note of optimism from David Lefkowitz, the head of U.S. equities at UBS.
Market Conditions Set for Growth
Lefkowitz asserted, "The good news is that growth and inflation should start to improve later this year as the economy adjusts to the one-time impact of the tariffs. Falling inflation and accelerating economic growth typically create a favorable climate for stocks."
The potential cherry on top? A possible resumption of Fed rate cuts later this year could further bolster market confidence, as growth prospects become increasingly favorable.
Conclusion: What Lies Ahead?
As we approach a historic 1,000 days in this bull market, investors are left wondering: Will the ascent continue? The current landscape, characterized by robust recoveries and positive economic signals, hints at a bright future for the S&P 500. While caution is always warranted, the future seems promising, making it an exciting time for investors to keep their eyes on the market.
For more insights on market trends and investment strategies, check out Bespoke Investment Group or UBS Global Wealth Management.
