A Bull Market Is Coming: History Says the S&P 500 Could Soar 24% in the Next Year
The Federal Reserve has been quite aggressive in its fight against inflation. Officials approved 11 rate hikes during the 12 meetings between March 2022 and July 2023, raising the benchmark federal funds rate at its fastest pace since the early 1980s. But the abrupt change in monetary policy made investors nervous as overtightening could easily bring about a recession. That fear sent the S 500 tumbling into a bear market early last year.
However, investor sentiment has improved greatly in recent months amid signs of economic resilience. Inflation fell to 3.0% in June (closing in on the Fed's 2% target), and U.S. GDP growth accelerated in the first and second quarters. That positive data helped the S 500 rebound sharply from its bear-market lows, and the broad-based index is now less than 5% away from a fresh all-time high. Reaching that mark would definitely signal a new bull market.
But history says the S 500 is headed even higher in the next year.
Source Fool.com
