Some investors may be feeling jittery about the current bull market, given its length and recent fluctuations. But before you start planning a retirement party for the bull, it’s important to consider historical data that suggests this market still has room to run.
Over the years, U.S. stocks have experienced long, profitable bull markets followed by shorter bear periods. However, for long-term investors who stay the course, these bear markets tend to be mere blips on the radar.
While the market’s growth may seem slow to some, with alternating bull and bear markets creating a rollercoaster effect, patient investors have seen an average annual gain of about 10% over the long term.
Long Bulls, Short Bears
Despite concerns that the current bull market may be losing steam, historical data suggests otherwise. On average, bull markets since 1942 have lasted 4.3 years with a cumulative return of 149%, while bear markets have lasted just 11.1 months with a loss of -31.7%.
Given that the current bull market is only 1.7 years old, it still has room to grow before reaching the historical average lifespan of 52 months. This indicates that the bull market may still have plenty of legs to run on.
Nature of the Beast
While it’s natural for investors to feel anxious about market fluctuations, it’s important to remember that bull markets are characterized by new highs. The current bull market, despite recent pullbacks, is likely to continue reaching new highs as the market grows over time.
Although bear markets can be unsettling, selling out of fear is often a knee-jerk reaction that may not be in investors’ best interest in the long run. Instead, taking a long-term view and staying the course can lead to greater gains over time.
Reasons For Sustained Bull Strength
Several factors support the idea that the current bull market still has room to run, including:
- The potential for interest rate cuts by the Fed to boost stock prices
- Strong forward earnings projections for large-company stocks
- The global dominance of U.S. markets and the strength of the U.S. economy
- High economic productivity driven by advances in artificial intelligence
- The potential for tech companies to continue driving market growth
Overall, historical data and current trends suggest that the bull market may still have plenty of life left. By staying invested and focusing on the long term, investors can potentially reap the benefits of a market that continues to grow and reach new highs.
Title: Non-Tech Stocks Set to Outperform in Second Half of 2024 – Expert Analysis
As we head into the second half of 2024, the financial markets are poised for a shift that could favor non-tech stocks over their tech counterparts. This shift is expected to strengthen the bull market even further, potentially leading to higher average returns for diversified investors across all 10 non-tech stock sectors.
While tech stocks have dominated the market in the first half of the year, the upcoming months are likely to see a broader growth trend that benefits non-tech stocks. This indicates that the current bull market still has room to run, with the potential for further gains ahead.
Dave Sheaff Gilreath, CFP®, founder and chief investment officer of Sheaff Brock Investment Advisors, provides expert insights into the market outlook. With assets under management of approximately $1.4 billion, Gilreath’s analysis highlights the opportunities presented by non-tech stocks in the coming months.
It’s important for investors to consider the potential shift in market dynamics and the implications for their portfolios. By diversifying into non-tech stocks, investors may be able to capitalize on the expected growth trend and achieve higher returns in the second half of 2024.
In conclusion, the outlook for non-tech stocks is positive, with the potential for outperformance in the months ahead. By staying informed and adjusting their investment strategies accordingly, investors can position themselves to benefit from the evolving market trends and maximize their returns.