The US stock market continues its winning streak, with the S&P 500 climbing 25% higher over the past five months. Despite concerns over inflation, recession, and other factors, the market has remained resilient. History shows that strength begets strength, with the S&P 500 higher 12 months later in all but two of the 30 five-month streaks since 1950.
Investors are questioning if the market has moved too far too quickly, but the data suggests otherwise. The financial sector has been the best-performing sector, with a 28% return, followed by tech and industrials. Six of the 11 S&P 500 sectors are up 20% or more over the past five months.
The rally is not limited to large-cap stocks, with risk-on assets like crypto, disruption stocks, and IPOs also seeing gains. Reddit’s stock price has nearly doubled in less than a week since its IPO, showing the appetite for high-growth investments.
Overall, the market remains bullish, with gains across various sectors and asset classes. Investors are advised to stay informed and continue monitoring market trends for potential opportunities.
