For simply the third time within the final decade, the S&P 500 has been increased for eight consecutive weeks. That is the nineteenth time it occurred since 1950.
With a 15.5% achieve for the reason that final week in October, it’s the third strongest 8-win streak for the S&P 500. Not dangerous. Not dangerous in any respect.
It’s bizarre to say that it’s been a troublesome yr, contemplating the S&P 500 is 26% and the Nasdaq-100 is up 54%. And whereas robust will not be the proper method to describe the market in 2024, it definitely hasn’t been simple.
There was good cause to be involved coming into the yr. Inflation was working at over 6%. The fed had already hiked seven instances for a complete of 425 foundation factors. And with that, shares had gotten killed.
It’s simple to neglect, now that the Q’s are up 54% on the yr, however coming into 2023, Meta was in a 68% drawdown. Nvidia and Amazon have been each off 55%. Alphabet was 41% under its excessive. After which within the first quarter, we had the regional financial institution disaster. After which we needed to fear about about what impacts which may have on credit score availability. Then we had the same old nonsense with the debt-ceiling “disaster.” All of the whereas, we had been bracing for the impression of a recession that by no means got here.
And within the inventory market, all yr we had individuals speaking about how the entire positive factors have been coming from the highest 7 shares, implying that the rally was someway synthetic and as a result of fizzle out. And it wasn’t a wholly unreasonable statement. Once we had a swift 10% correction in October within the S&P 500, the equal-weight model of the index was down 5% on the yr with simply two months to go.
After which it occurred. Shares stopped taking place and now they received’t cease going up. Eight weeks in a row of positive factors.
It’s been a hell of a yr for the inventory market, however don’t let anyone inform you that it’s been simple for buyers. It was something however.