Stocktake: New records for historic bull market

History suggests momentum will carry stocks higher in the coming months

It took 100 trading days for stocks to gain 50 per cent, which is the biggest 100-day gain in 87 years, according to Bespoke Investment. Photograph: Mick Tsikas/EPA

It took 100 trading days for stocks to gain 50 per cent, which is the biggest 100-day gain in 87 years, according to Bespoke Investment. Photograph: Mick Tsikas/EPA

 

When all hell was breaking loose last March, did anyone think the S&P 500 was about to soar 50 per cent and be back at all-time highs by August?

That bear market was the fastest ever, notes LPL Research’s Ryan Detrick, at just over one month. The subsequent bull market has been similarly historic.

Detrick notes it normally takes 30 months for stocks to recover their losses following bear markets caused by recessions; this time, it took five months.

It took 100 trading days for stocks to gain 50 per cent, notes Bespoke Investment – the biggest 100-day gain in 87 years. The Nasdaq 100 did even better, soaring 60 per cent over the same period. That’s the third-strongest run on record, behind only the record-breaking runs that ended in January 1999 and March 2000.

Of course, 1999-2000 turned out to be a lousy time to buy for long-term investors, but history suggests momentum will carry stocks higher in the coming months. Further gains will seem unthinkable to sceptics, but “there has been nothing normal about this recession”, says Detrick, “so maybe we shouldn’t be shocked about yet another record going down in 2020”.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.