Now that it has been nine months since the bear market low, you may be wondering how much longer this bull market can go. It is important to note that there is strong historical precedent for bull markets to follow through in year two.
Sam Stovall, S&P’s chief investment strategist, recently pointed out that all but one of the 14 previous bull markets since 1932 survived into a second year. They then averaged 12.5 percent gains during that year (AP, 12/08/09).
Good reason to be optimistic.
