Last week the stock market dropped moderately for most of the week only to rally strongly on Friday. The late week rally was fueled by positive earnings from Apple and big tech, as well as another good employment report. First quarter earnings are winding down this week and it’s clear there was no big earnings collapse, the economy is still relatively strong, and the job market is healthy.
I continue to believe the US stock market entered a bull market in October and it’s only a matter of time for the S&P 500 to get back to its previous all-time highs. Global market movement is a good indicator of what’s on the horizon for America because although individual market cycles begin and end on slightly different timelines for each country, the overriding cycle is often felt by all since we live in an economically unified world. In 2022 European countries entered a bear market cycle 3 to 9 months before the US entered the bear market so it may come as no surprise that they are leading the US into the new bull market. Earlier this year England and France surpassed their previous all-time highs while Germany is close to reaching theirs. On the other side of the globe, Japan and Australia are also close to their previous highs.
Currently the S&P 500 is around 14% below its old highs and I continue to see this as a good buying opportunity to invest excess cash at these levels.
Photograph by: Aditya Vyas on Unsplash
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