6 New All Time Highs in January
Yes, new all time highs clump together. In January we had 6 new all time highs on the S&P 500, and 1 in February as of Friday the 2nd.
Yes, new all time highs clump together. In January we had 6 new all time highs on the S&P 500, and 1 in February as of Friday the 2nd.
All time highs can make people feel many things such as, “this going to end badly” to “is this sustainable?” to “should I just lock in the gains now?”.
However the data shows that there are very few times that selling at an all time high actually works, it’s actually a better buying signal than a selling signal.
“With the exception of 2007, returns were higher one year later 100% of the time.” - Michael Batnick
And to add fuel to the fire:
The average 12 months gain from a new all time high is around 14%.
The average time to the next recession was around 31 months.
In the case of an achieved soft landing (there has been only three) the average was a 20% return with 58 months to the next recession.
I’m not guaranteeing that history is going to repeat itself here but if 2024 is anything like previous market cycles we could be in for another good year.
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