The stock market is on an incredible run right now. In fact, it’s so incredible that it could mark the start of a new multi-year bull market. Specifically, the S&P 500 has rallied for eight consecutive days – its longest winning streak in two years.
Now, these big winning streaks are rare but not unheard of.
Over the past 70 years, the S&P 500 has notched about 100 different eight-day winning streaks.
However, they only tend to happen during cyclical bull markets.
This S&P Streak Likely Marks a New Bull Market
There were a handful of eight-day winning streaks in the 1990s, mid-2000s, and 2010s bull markets – and none during the dot-com crash, 2008 financial crisis, or 2020’s COVID crash.
So, while eight-day winning streaks do happen, they do not happen in bear markets.
Pertinently, this is the S&P 500’s first eight-day winning streak in this cycle (or since the most recent bear market in 2022).
That’s very bullish.
Going back to 1950, whenever the market notched its first eight-day winning streak in a cycle, stocks always soared at some point over the next year.
They also always soared at some point over the next two years.
Average one-year forward returns? Over 15%. Average two-year forward returns? Over 25%.
Point being: The first eight-day win streak for stocks is something to take seriously. It is a very bullish price signal.
The Final Word
For example…
The first eight-day winning streak after the 2008 financial crisis came in January 2013. Over the next year, stocks rose 20%. Over the next two years, they rallied nearly 40%.
The first winning streak after the dot-com crash came in March 2003. A year later, stocks were up nearly 25%. Two years later, they were up more than 45%.
We just saw the first eight-day winning streak after the 2022 bear market crash.
And history is telling us that stocks are poised to soar throughout 2024 and 2025.
It is time to get prepared for this rally.
And that’s why we just put together an exclusive portfolio of the best stocks to buy right now for huge returns ahead.
