A New Bull Market May Have Started. History Says Stocks Will Do This Next
The S&P 500 (SNPINDEX: ^GSPC) dropped into bear-market territory in January 2022, but the index has rebounded sharply in 2023, and history says it's likely heading even higher. The S&P 500 was up more than 20% from its bear-market low when trading stopped on June 6, a threshold that some investors see as the beginning of the next bull market. Others say the S&P 500 needs to hit a new high before the bear market officially ends, but crossing the 20% threshold is a big deal regardless.
Since 1950, whenever the S&P 500 has climbed 20% from its 52-week low, the index has gone on to produce an average return of 17.7% over the next 12 months, according to Carson Investment Research.
Of course, past performance is no guarantee of future results, but investors would still be wise to buy a few shares of Amazon (NASDAQ: AMZN) and the Vanguard S&P 500 ETF (NYSEMKT: VOO) right now. Here's why.
Source Fool.com
