After a red-hot start to the year, the stock market stalled out in February. And now some investors are questioning whether what we’ve been seeing is a new bull market breakout – or a bear market fake-out. 

I have one chart that decidedly proves the bear market is truly over. 

In it, we can see that the stock market just did something it has only done 10 times before over the past 70 years. And every time it has, stocks went on to soar over the next few months. 

That “something” is having a red-hot January.

The S&P 500 popped 6.2% in January – one of its best January performances ever. In fact, since 1950, the S&P 500 has risen 6% or more in January in just 10 separate years. 

And every single time, stocks didn’t stop rallying after January. They kept rallying for the rest of the year, with an average return of 23%. The only notable exception here is 1987, in which stocks rallied up until Oct. 19, 1987 – better known as “Black Monday” – which resulted in just a 2% gain on the year. 

The results are even better when stocks popped in January after having a bad showing in the previous year – the exact situation we have in 2023. 

That has happened four times since 1950. Each time, stocks rose by more than 20% through the entire year, with an average annual return of 26%!

The Final Word on the New Bull Market

So, if you’re worried that the stock market’s big January performance was just another bear market rally, worry not. Barring a black swan event, history says there’s a very good chance this is the start of a big stock market breakout that lasts for the rest of the year, at least. 

If this is the start of a new bull market, then some investors will make fortunes this year. 

Simply consider that back in 2020 – the last time a new bull market emerged – more than 20 stocks rose 1,000%-plus in that year. 

Already here in 2023, two stocks have soared more than 1,000%. 

Most years, it is impossible to find stocks that soar 10X in less than 12 months. But that’s not the case during times like 2023; not when bear markets become bull markets. In those rare years, it is actually very possible to find stocks that rise 10X in 12 months. 

Learn how to identify potential 10X opportunities this year.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.