Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information on the world of trading. Today, we are diving into the recent epic run of the S & P 500 and what it means for investors.
The S & P 500 has been on a phenomenal winning streak, closing out the first quarter with a 10% year-to-date gain and a whopping 25% increase in the past five months. This kind of performance is rare, with only seven other periods since 1950 surpassing this level of growth. While many are predicting an imminent pullback, the strong momentum in the market suggests that the upward trend may continue.
According to Todd Sohn from Strategas, even after significant runs like the current one, historical data shows that six months down the road, the market tends to be higher most of the time. This goes against the common prediction of a pullback after such impressive gains.
It’s not just big cap tech driving the market higher – market breadth has been expanding with other sectors seeing strong advances. This broader market strength is crucial for a sustained market advance, as highlighted by veteran market watcher Ned Davis.
So, what does this all mean for investors? While a pullback may seem inevitable, trying to time the market or predict the duration of any decline can be challenging. As Chief Investment Strategist Alec Young advises, it’s often more profitable to stay invested and ride out the ups and downs of the market.
At Extreme Investor Network, we encourage investors to stay informed, stay diversified, and stay patient. By staying engaged with the market and avoiding knee-jerk reactions, you can position yourself for long-term success in the world of trading. Stay tuned for more unique insights and valuable information from our experts at Extreme Investor Network.