Stocks continue to surprise to the upside, with the Russell 2000 Index (small caps) and the Nasdaq making new all-time highs on Tuesday. The S&P 500 Index, a chip shot from new highs, already has made 30 new highs so far this year. “One thing that surprises many investors is new highs happen in clusters that can last a decade or more,” explained LPL Financial Chief Market Strategist Ryan Detrick. “Given that this cluster of new highs is only seven years old, history would suggest that we don’t bet against several more years of new highs.”
One of the more amazing charts (and our friend Sam Ro at Yahoo! Finance called this the chart of the year) is how this new bull market has tracked the 2009 bull market. We’ve been sharing this chart for months now, noting if things continued to track 2009, then significant gains could be in store and sure enough that has played out. Here’s the catch, continued strength could still be in store, as 2009 continued to gain the next few months from this point forward.
Lastly, will Santa come in December? We discussed this in detail at the start of the month in Big Gains Steal From Santa, but the truth of the matter is the S&P 500 Index is flat on average half way through the month and nearly all of the impressive December gains take place the second half of the month.
As shown in the LPL Chart of the Day, if Santa is going to come in 2020, now is the time for the reindeer to get ready and for stocks to potentially bounce.
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