S&P 500 Enters New Bull Market, Historically Signaling Positive Returns Over Next 2 Years
-
The S&P 500 has started a new bull market, historically signaling positive returns over the next 2 years. Specifically, the index has risen an average of 61% in the 2 years after a new bull market starts.
-
If this bull market lasts an average length, the S&P 500 could return 25% annually through February 2028. However, each bull market is unique, so past performance doesn't guarantee future results.
-
The S&P 500 currently trades at a high valuation relative to historical averages, indicating potential downside risk if earnings expectations aren't met.
-
The "Magnificent Seven" mega-cap stocks have substantial influence over the S&P 500, so any missteps from them could pressure the overall index.
-
Over the very long-term, the S&P 500 has returned about 10% annually for the past 30 years. That could be a reasonable expectation going forward through different market environments.