The S&P 500 is currently on the verge of reaching a new all-time high, marking a significant milestone in the financial markets. It's worth noting that almost two years have passed since the last time it hit an "All-Time High" (ATH), underscoring the importance of this event amidst the volatile market dynamics.
When examining the historical performance of the S&P 500, it is observed that on 14 previous occasions, the index went through periods of at least a year without reaching a new record, only to eventually achieve an ATH. This historical trend suggests a remarkable resilience in the market, showcasing its ability to recover and reach new heights even after prolonged periods of relative stability.
A deeper analysis reveals that, in 13 out of the 14 mentioned situations, the S&P 500 not only regained its ATH but also experienced substantial growth in the following year. The average of this growth reached an impressive 14.9%, illustrating the market's ability not only to overcome challenges but also to thrive and deliver significant gains in the long term.
Another interesting fact was that, between October 2022 and December 2022, the S&P 500 consistently increased for eight consecutive weeks. Analyzing the history since the 1950s, this sequence resulted in appreciation one year later on 16 out of 18 occasions. Projecting approximately 12 months forward, the average gain was 9.1%.
