Last week was a really good week for the stock market. In fact, it was so good that something super-rare happened – something that hasn’t happened since late 2021.
And it suggests that, despite all the skepticism out there, stocks are indeed sprinting into a new bull market.
Specifically, the stock market rose every single day last week.
The S&P 500 rose on Monday and Tuesday. Then it popped 1.5% on both Wednesday and Thursday and rose another 1.1% on Friday.
It was a so-called “Golden Week” for stocks.
This was the first Golden Week for stocks since late 2021. That means it was the first Golden Week for stocks since the most recent bear market.
Over the past two years, the stock market has suffered a nasty bear market, a rapid AI-fueled recovery and, during the first six months of 2023, one of the best first-halves in history for tech stocks.
Yet, through all that boom and bust, the stock market hasn’t recorded a week wherein it rallied every single day.
We haven’t had that steady and unrelenting buying pressure…
Until last week.
Could this be a major turning point for the stock market? Could the new bull market finally be arriving on Wall Street?
Heralding the New Bull Market
Now, Golden Weeks aren’t that uncommon. They happen more than you would think.
But importantly, they tend to only happen in cyclical bull markets.
There were a handful of Golden Weeks throughout the bull market of the 1990s. But there were none during the dot-com crash of the early 2000s.
During the bull market of the mid-2000s, there were also a handful of Golden Weeks. But there were none during the 2008 financial crisis.
There were some Golden Weeks throughout the bull market of the 2010s – but none during early 2020’s COVID crash.
Golden Weeks – like we saw last week – happen exclusively in cyclical bull markets.
Despite all the calls for another epic stock market crash and economic meltdown, the market is saying we’re actually in a new cyclical upturn.
Furthermore, it’s showing that we’re in the early stages of this new bull market.
This was the first Golden Week since 2022’s nasty bear market.
When was the first Golden Week after the early 1990s bear market? In late 1991, right before stocks went on a tear for nine straight years.
When was the first Golden Week after the dot-com crash bear market? In early 2003, right before stocks rallied for four straight years.
What about after the 2008 bear market? In late 2009, right before the stock market soared for 10 straight years.
We just saw the first Golden Week following the 2022 bear market. And that implies that the market will rally for the next several years.
The Final Word on Today’s Stock Market
Famed fund manager John Templeton once said, “bull markets are born on pessimism, grow on skepticism, mature on optimism, and die of euphoria.”
There’s a lot of pessimism and skepticism out there right now. Hindsight says this sentiment provides a great foundation for a new bull market to be born and grow.
That’s exactly what is happening.
The folks who move into the market now – in the midst of this huge turning point – will likely make a lot of money over the next 12 months.
And as it turns out, we’ve just created a brand-new portfolio full of high-conviction stocks to capitalize on this market turning point.
