Welcome to the Extreme Investor Network, where we provide you with cutting-edge insights and analysis on the latest trends in the investment world. Today, we are diving into the current bull run that has been making waves in the market.
The S&P 500 has seen a remarkable 60% increase since hitting a bear market low in October 2022, driven by easing inflation and excitement surrounding artificial intelligence. As the broad market index reaches record highs, with some experts predicting it could soar above 6,000 before year-end, many investors are left wondering what lies ahead.
According to research from Ned Davis Research, if the current bull gain holds steady through October 12, it would be the fourth-strongest among 13 cyclical bulls that lasted at least two years. Ed Clissold, the firm’s chief U.S. strategist, pointed out that bull markets “don’t die of old age,” but highlighted three key factors for the momentum to continue.
Firstly, Clissold emphasized the importance of maintaining disinflation, as inflation pressures have significantly decreased compared to previous years. With the consumer price index rising 2.5% in August, nearing the Federal Reserve’s 2% target, keeping inflation in check is crucial for sustaining the bull run.
Secondly, a successful soft landing is vital for the market to thrive. The recent rate cut by the Fed aims to balance easing inflation with some uncertainties in the labor market. Clissold believes that with low recession risks in the near term, moderated growth will allow the Fed to continue cutting rates at a deliberate pace.
Lastly, Clissold highlighted the importance of strong earnings growth in supporting the bull market. Analysts expect third-quarter S&P 500 earnings to grow by 4.6% year over year, marking the benchmark’s fifth consecutive quarter of profit expansion.
In other news, JPMorgan recently upgraded EVgo to overweight from neutral, projecting nearly 80% upside potential. The firm cited EVgo’s revenue generation on every kW of electricity dispensed to EV drivers as a key driver of future growth, especially as competitor charging networks may struggle to deploy chargers due to lack of demand.
As the market continues to evolve, staying informed and adapting to new trends is essential for investors looking to navigate the complex landscape of investing. Stay tuned to Extreme Investor Network for more exclusive insights and analysis to help you stay ahead of the curve in the world of investing.