Market Soars to Record Highs: Is Now the Time to Buy AI Stocks?

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Key Takeaways: 

  • The stock market reached a fresh all-time high Friday — its first in more than two years.
  • On average, the stock market tends to rise by 12% in the year following the establishment of new all-time highs.
  • The recent University of Michigan Consumer Sentiment Survey indicated that consumer sentiment in January soared to its highest level since July 2021.
AI stocks - Market Soars to Record Highs: Is Now the Time to Buy AI Stocks?

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The stock market reached a fresh all-time high Friday — its first in more than two years.

But that’s not the interesting part…

Ask yourself: What typically occurs after stocks hit all-time highs?

More all-time highs.

On average, I’ve seen that the stock market tends to rise by 12% in the year following the establishment of new all-time highs. More importantly, stocks generally avoid a sharp decline after reaching these peaks. Rarely do they drop more than 10% in the year following the setting of all-time highs, and they almost never experience such a decline over the subsequent three or five years.

Point being: When stocks are soaring to all-time highs, that’s when you might want to consider getting in on the action!

Stocks hit an all-time high yesterday for the first time in over two years. That means right now is actually when you should consider buying stocks.

The highs stocks reached yesterday were bolstered by positive news about the U.S. economy. At the end of the day, consumer spending fuels our economy; so the more consumers spend, the more our economy thrives.

And the American consumer couldn’t be in better shape right now.

This was evident in the recent University of Michigan Consumer Sentiment Survey, which indicated that consumer sentiment in January soared to its highest level since July 2021.

Consumer sentiment has been on an upward trajectory for months, rising from very low points in summer 2022. Such a trend is uncommon and has historically aligned with the onset of multi-year bull markets in stocks. Take a look at the following chart:

In other words, the data increasingly suggests that we are entering Year 2 of a multi-year bull market that lasts throughout the 2020s.

In other words, the data is telling us we are entering the second year of a multi-year bull market, a market that could persist throughout the 2020s.

Welcome, folks, to the Roaring Twenties.

The Final Word

This party is just getting started.

Over the next several years, the stock market could push higher, thanks to AI, as the economy unlocks significant productivity gains. Tech stocks will spearhead the rally, with AI stocks emerging as the biggest winners. Should you join the savvy few who are backing up the truck on AI stocks?

Click here to learn the truth about the AI-powered Roaring Twenties 🚀.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2024/01/market-soars-to-record-highs-is-now-the-time-to-buy-ai-stocks/.

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