The Market Has Only Done This 4 Times Since World War II. Here's What Comes Next.
Written by Selena Maranjian for The Motley Fool -> Our current stock market has been rising in value very briskly. A pullback this year or next shouldn't be surprising at all. Don't keep money you'll need soon in the stock market. The folks at Deutsche Bank Research recently
Our current stock market has been rising in value very briskly.
The folks at Deutsche Bank Research recently pointed out something interesting about our current stock market -- that the S&P 500 has only risen this rapidly four times in the 81 years since the end of World War II.
As of the end of May, it had gained more than 16% over the past two months. For context, consider that the S&P 500 has averaged annual returns close to 10% (ignoring inflation ) over many decades, and an impressive 13.7% over the past decade.
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In three of the four previous times, the U.S. economy was coming out of a recession -- the periods following the oil crisis in the 1970s, the global financial crisis of 2008, and the more recent Covid-19 disruption.
The other instance is the worrisome one -- it occurred just before the stock market crash of 1987 . And that was no correction -- it was a clear crash, with the Dow Jones Industrial Average plunging nearly 22% in a single day.
We certainly don't seem to be emerging from a bear market. Check out the S&P 500's recent returns:
Source: Slickcharts.com, as of June 2. Returns reflect reinvested dividends.
