Why do bull markets return so quickly?
A simple explanation: bull markets that return more quickly are an indication that investors had less uncertainty and more conviction in an economic and earnings recovery. “The timidity with which investors are willing to get back in that implies how long the bull market can last,” Stovall said.
How much has the S&P 500 gone up in 2020?
The market has gone up a lot, in record time. Since the low on March 23, 2020, the S&P 500 has surged more than 90% ; the Dow Jones Industrial Average just under 88%; and the Nasdaq near 112%. That’s the highest first-year bull market gains since 1945 and outpaced the average of 37.5% for all prior bull markets.
When was the first tech bubble?
The 1966 market was the tail end of the “data processing bubble” — yes, the 1960s had the first tech bubble. And 1970 was when inflation finally started to take hold of the economy and investor sentiment.
Is the S&P 500 bullish?
A caveat to this bull market, and as a result any reading of the historical chart of the S&P 500 as a reason to remain bullish, is its origin. As former Fed chairman Ben Bernanke said last spring, Covid was more like a bad “snowstorm” than any market and economic downturn that had occurred before, including the Great Depression. But to technical market analysts, it really doesn’t matter what causes the reset in prices and valuation when identifying the end of one bull market and the start of a new one.
How long did the bull market last?
The remaining bulls lasted from four years (October 1957) to nearly 11 years (March 2009). A simple explanation: bull markets that return more quickly are an indication that investors had less uncertainty and more conviction in an economic and earnings recovery.
Is the break in the bull market a conscious choice?
But to technical market analysts, it really doesn’t matter what causes the reset in prices and valuation when identifying the end of one bull market and the start of a new one. Yes, this time was different. The break in the former bull market was a “conscious choice,” i.e., shutting down the economy.
Is the bear market man made?
But all bull and bear markets are “man-made” in one way or another, and for Stovall, the charts say a “bear market” is a bear market. The bear market of 2020 was a cyclical bear market rather than a secular bear market, or even a “mega meltdown one.”. His preferred way to describe it?
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