Ah, the sweet smell of a bull market. It appears our dear friend, the stock market, has sauntered into a new technical bull market this week. And if history has anything to say about it, we might just be in for quite the stock boom.
You see, when stocks rise 20% or more from recent lows, it’s like a beautiful, bullish butterfly emerging from its bearish cocoon. And on June 8th, our favorite little index, the S&P 500, spread its wings and soared more than 20% above its October lows.
Now, you might be thinking, “Who cares? It’s just a 20% rally.”But let me assure you, my skeptical friends, that there’s quite a bit of historical significance to this seemingly arbitrary milestone.
Since 1949, the S&P 500 has flirted with a new technical bull market just 13 times. And 12 of those times, stocks just kept on climbing, earning an average return of over 20% in the next year. The only time the market played coy was in late 2001, but that rally had a completely different vibe.
In 2001, stocks were like a hare in a race, zipping up 21% in just 105 days. This time around, however, our dear market is playing the role of the tortoise – ascending 21% in a leisurely 233 days.
And as the old adage goes, “Slow and steady wins the race.”Fast rallies tend to fizzle out, while slow, steady climbs often signal that a major boom is on the horizon.
So, let’s take a walk down memory lane, shall we? If we examine every new technical bull market since the Great Depression, we’ll find that there have been quite a few short-lived, fast-and-furious rallies that couldn’t quite make it past the 200-day mark.
But once a rally lasts more than 200 days, the odds seem to tip in favor of a multi-year bull market.
Over the past century, there have been 26 technical new bull markets. Fourteen of them couldn’t quite survive past their 200th day. But of the remaining 12, more than half – nine, to be precise – went on for more than three years.
And guess what? We’ve just waltzed right past that magical 200-day mark in our current rally.
So, the longer this stock market waltz continues, the more it seems like we’re at the beginning of a fabulous, multi-year bull market shindig.
My advice? Start getting your portfolio in tip-top shape for what could be a years-long stock market party, especially with a major catalyst coming this week.
In fact, we’ve compiled a list of the top AI stocks to buy today, because we believe these tech darlings will be leading the rally. And to give you a taste of the AI magic, we’re showing a special presentation that demonstrates the real-world power of artificial intelligence.
Fair warning, though: This presentation might just blow your mind. And these stocks? They could produce mind-blowingly huge profits as well. So strap in, and enjoy the ride.
