The stock market is two years (and counting) into a bull market.
Last Saturday marked the second anniversary of the current bull market for stocks. After bottoming out at 3,577 on October 12, 2022, the S&P 500 has gone on to deliver a 68% gain through October 11th, 2024 (see the chart).
S&P 500’s Bullish Performance Since October 2022
Source: Bloomberg, calculations by Horizon Investments, data as of 10/11/2024. Indices are unmanaged and do not have fees or expense charges, both of which would lower returns. It is not possible to invest directly in an unmanaged index.
Many investors may not have predicted that impressive run-up two years ago. The S&P 500 had seen its worst six-month start to a year since 1970, the Fed was rapidly raising interest rates, and calls for an imminent recession were growing louder by the day.
And yet, here we are.
The past two years serve as a good reminder that bull markets are (to quote famed investor Sir John Templeton) “born on pessimism” and can climb a proverbial wall of worry, overcoming challenges that can seem insurmountable in the moment.
The upshot: Times of great fear and uncertainty may present profitable opportunities. The key could be a plan that helps investors stay calm and on track in pursuing their financial goals during moments of maximum pessimism.
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. Reference to an index does not imply that any account will achieve returns, volatility, or other results similar to that index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error targets, all of which are subject to change. It is not possible to invest directly in an index. Information obtained from third party sources is believed reliable but has not been vetted by the firm or its personnel.
Information obtained from third-party sources is believed to be reliable but has not been vetted by the firm or its personnel.
This commentary is written by Horizon Investments’ asset management team. Past performance is not indicative of future results. Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any security. This report does not attempt to examine all the facts and circumstances that may be relevant to any company, industry, or security mentioned herein. We are not soliciting any action based on this document. It is for the general information of clients of Horizon Investments, LLC (“Horizon”). This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any analysis, advice, or recommendation in this document, clients should consider whether the security in question is suitable for their particular circumstances and, if necessary, seek professional advice. Investors may realize losses on any investments. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. All investing involves the risk of loss.
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