Stocks Hit ‘Escape Velocity,’ Blasting Into a New Bull Market

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  • We think stocks have rallied long and hard enough that there is no longer a chance they revisit their lows. Instead, the market will just keep floating upward.
  • The market has now officially posted a positive return for five straight months. Historically speaking, five-month winning streaks are rare and very bullish for stocks.
  • Stocks’ first five-month winning streak after a bear market always marks the start of a new multi-year bull market.
bull market - Stocks Hit ‘Escape Velocity,’ Blasting Into a New Bull Market

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Back in October 2022, when this stock market rally got started, very few investors believed in it. Ten months later, though, that’s no longer the case. And we think the bull market bandwagon is about to get even bigger as stocks hit “escape velocity.” 

Originally a physics term, escape velocity describes the speed needed for an object to escape the influence of gravity and fly into space. After successfully breaking away from that downward pull, the object is free to move further into space. 

And we think stocks have hit “escape velocity.” 

That is, we think stocks have rallied long and hard enough that there is no longer a chance they revisit their lows. Instead, the market will just keep floating upward. 

We think the market officially hit escape velocity two days ago, on the final trading day of July. The S&P 500 rallied yet again, closing out July on a positive note. 

And the market has now officially posted a positive return for five straight months. 

Historically speaking, five-month winning streaks are rare and very bullish for stocks. 

Escape Velocity Marks a New Bull Market

Since 1949, the S&P 500 has recorded about 30 different five-month winning streaks. More than 90% of the time, the market was higher nine, 12, 18, and 24 months later. Average returns over the following year are about 10%. Average returns over the following two years are about 14%. 

A table detailing instances when the S&P reached a five-month winning streak and forward returns afterward

More importantly, the first five-month winning streak after a bear market has historically always marked the end of the bear market – or the moment that stocks entered “escape velocity” in a powerful new bull market. 

After the 2008 financial crisis, stocks notched their first five-month winning streak in July 2009. Stocks went on to soar over the next 10 years. 

After the dot-com crash, stocks reached their first five-month winning streak in July 2003. Stocks went on to soar for the next four years. 

And after the early 1990s recession, stocks achieved their first five-month winning streak in March 1991. Stocks went on to soar for the next 10 years. 

Time and time again, stocks’ first five-month winning streak after a bear market always marks the start of a new multi-year bull market. 

We’re confident this time will not be different. 

Stocks have entered escape velocity – and it is up, up, and away from here. 

The Final Word

That’s why I want to tell you about one of my favorite investments for this new bull market. 

One great prospective investment is the very company that started this whole stock boom – OpenAI, the creator of ChatGPT. 

Since ChatGPT’s launch in November 2022, the company’s valuation has already doubled!

But that’s just the start. 

I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest. 

OpenAI represents the potential investment opportunity of a lifetime. 

Too bad it is a startup that you can’t buy on a public exchange like a big stock… 

Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO. 

This is your chance to invest in the next big thing. Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. 

Learn all about this loophole.

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


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