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Navigating a Bull Market: What History Tells Us About All-Time Highs
Earnings growth and broader market participation beyond tech are driving the S&P 500 near record highs, with valuations steady around 22 times forward earnings.
- Taresh Batra notes that markets hover near all-time highs as the S&P 500 index sets records while volatility remains subdued, leaving investors split between optimism and anxiety.
- Corporate fundamentals have strengthened, with companies showing higher profit margins and stronger balance sheets, while earnings expectations continue to rise across sectors.
- Over recent periods, the market went long stretches without a 2% decline, including over 350 consecutive days in 2024 and more than 90 days since a 2% pullback.
- Financial advisers recommend staying diversified and disciplined, as broader market participation and small and mid-cap stocks joining the rally reduce concentration risk and prevent impulsive moves from market headlines.
- Historical returns show investing at peaks often yields above-average one-year, three-year, and five-year returns, while VIX declines for four months predict gains nine months later.
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36 Articles
36 Articles
Navigating a bull market: What history tells us about all-time highs | News Channel 3-12
Michael M. Santiago // Getty Images Navigating a bull market: What history tells us about all-time highs As markets hover near all-time highs and September brings its reputation for volatility, many investors find themselves caught between optimism and anxiety. Should you be worried when stocks seem to climb endlessly? What do high valuations really mean for your portfolio? Range explains the historical context behind these market dynamics, whic…
US stocks, which have reached record highs, look extremely expensive even by relative valuations and raise doubts about the prospects for returns. The party may be justified by further growth in corporate profits.
Coverage Details
Total News Sources36
Leaning Left2Leaning Right1Center28Last UpdatedBias Distribution90% Center
Bias Distribution
- 90% of the sources are Center
90% Center
C 90%
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