Three Historical Reasons Why Markets May Go Even Higher
CFA | SVP, Chief Investment Officer
Where do markets go from here?
Despite the incredible run on markets since the pandemic bottom back on March 23, 2020, we believe that the answer is likely higher. There are three historical reasons why.
- Historically impressive track record of the second year of new bull markets. Back on March 24 of this year, we officially entered the second year of this new bull market. The first year we know was astounding, but what should we expect in year two?
- Returns post best 12-month periods. The 12-month period from March 23, 2020 through March 23, 2021, was the best 12-month period for the S&P 500 in 75 years (Bloomberg, Bloomberg data).
- Market returns post US Manufacturing PMI highs. Now that the economic recovery in the US is solidly underway and is returning to a more normal state of operations, the US Manufacturing PMI recently surged to a multi-decade high reading of 64.7 (Strategas Research Partners).
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