Hennion & Walsh Trending

The current bull market will mark its official 1 year anniversary this week – March 9th to be specific. History suggests that this is a critical milestone and one in which investors should pay attention to. According to Bespoke Investment Group, of the 26 bull markets – with bull markets defined as at least a 20% rally that was preceded by at least a 20% decline in the S&P 500 –  that have taken place in the history of the S&P 500, 13 of them (i.e. 50%) have lasted for more than one year. The average length and gain of bull markets that pass the one year anniversary mark is 4.4 years and 152.81% respectively. Furthermore, only two of the previously highlighted 13 one year + bull markets lasted fewer than 2 years.

Given this consistent string of historical data, Bespoke Investment Group concluded that, “Bull markets that pass the one year mark have almost always lasted two years or more.” We, at Hennion & Walsh, agree with this sentiment and believe that this particular bull market should likely follow suit although it will likely face many more global economic and political impediments than previous bull markets faced.