Do you remember where you were on March 6, 2009?
It was five years ago today that the S&P 500 (SPX) recorded its intraday bottom for the financial crisis of just under 667. It was the lowest point for U.S. stocks in over a decade.
Fast forward to today and the benchmark is notching a fresh record nominal high of 1,882, nearly tripling from the 2009 low.
The current bull market is sixth on the all-time list in terms of duration, according to Bespoke Investment Group. When looking at total percentage gains, this bull ranks fourth.
Of course, the big question for investors is what’s next after such a big rally. Federal Reserve Bank of Dallas President Richard Fisher made headlines this week when he warned the Fed should make sure “the ghost of ‘irrational exuberance’ does not haunt us again.”
Some are worried that valuations are stretched and that central-bank stimulus has fueled a bubble. Then again, investors have been hearing those concerns for years, and yet the market continues to grind higher.
Sam Stovall, chief equity strategist at S&P Capital IQ, notes that since the end of World War II, there have been 11 bull markets. Fewer than 30% of these bull markets have celebrated a sixth birthday. However, bull markets that have survived a sixth year have averaged gains of 26% that year, according to Stovall.
Source: S&P Capital IQ
“As always, use history as a guide, not gospel, especially since there has been a limited number of sixth-year bulls,” he adds.
Photo Credit: Gerry Snaps
DISCLAIMER: The information in this material is not intended to be personalized financial advice and should not be solely relied on for making financial decisions. All investments involve risk, the amount of which may vary significantly. Past performance is no guarantee of future results.
