Last Saturday marked the second anniversary of the current bull market for stocks. After bottoming out at 3,577 on Oct. 12, 2022, the S&P 500 has gone on to deliver a 68% gain through Oct. 11, 2024 (see the chart).
S&P 500’s Bullish Performance Since October 2022
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.
By Mike Dickson, Ph.D.
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Information obtained from third-party sources is believed to be reliable but has not been vetted by the firm or its personnel.
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