Yes, but: None of those come close to having the influence of the stock market.
- The S&P 500 alone consists of over $36 trillion worth of companies, according to S&P Dow Jones Indices analyst Howard Silverblatt.
By the numbers: The S&P has generated better returns only 16 other times since 1950, LPL Financial’s Ryan Detrick observed.
- On average, it gained another 9.7% in the next six months.
- And, it delivered positive returns in 12 of those 16 cases.
[rebelmouse-proxy-image https://media.rbl.ms/image?u=%2FzyEqxubr1S9h_VW92Dn_m-mr0tk%3D%2F2021%2F07%2F01%2F1625139162572.png&ho=https%3A%2F%2Fimages.axios.com&s=42&h=0ecf5f973c1d3601716dfe51804f7b6c53647e2e7953eeea1dc557e2cfb66891&size=980x&c=2751706958 crop_info="%7B%22image%22%3A%20%22https%3A//media.rbl.ms/image%3Fu%3D%252FzyEqxubr1S9h_VW92Dn_m-mr0tk%253D%252F2021%252F07%252F01%252F1625139162572.png%26ho%3Dhttps%253A%252F%252Fimages.axios.com%26s%3D42%26h%3D0ecf5f973c1d3601716dfe51804f7b6c53647e2e7953eeea1dc557e2cfb66891%26size%3D980x%26c%3D2751706958%22%7D" expand=1] Data: YCharts; Chart: Axios Visuals
What they’re saying: "Strong equity markets tend to stay strong," Fundstrat Global Advisors’ Tom Lee tells Axios.
- "This makes sense in today’s context given the robust economic recovery plus pent-up demand plus substantial corporate operating leverage. This is a formula for markets to surprise to the upside."
Be smart: Assuming history is indeed a guide, then the stock market could be due for a 10% pullback in the coming months.
- All of that said, historical performance is no guarantee of future results.
