The S&P 500 hit a new all-time-high of 5,500 yesterday. That is the index's 31st time it has hit a new all-time-high in 2024!
Increasing, more and more experts are coming on TV to say that the market will crash soon.
Is the market hitting a new high a bearish signal? History says no. Since 1950, the S&P 500 Has Set 1,250 All-Time Highs along the path to its current level. That’s an average of 16 All-time-highs a year
If you break it down by decades, the 1990s had 300 all time highs made. This decade was one of the most bullish, with the S&P 500 gaining +312%.
The 2000's had only 13 all time highs. The 2000's was one of the most bearish decades, which saw the dot com crash and Great Financial Crisis.
Conclusion? New Highs are actually a bullish and not a bearish signal. Investors should not sell out of the market just because it keeps making new highs. This is especially if stock prices are driven by earnings growth, which is the case today.
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- DrewStrong·06-21Nice analysis! New highs are bullish! [Applaud]LikeReport
- 中蓝的中榕·06-22thanks for sharingLikeReport