The stock market is roaring back to all-time highs with a historic 12.5% four-week surge, yet a stark disconnect remains as everyday consumers grapple with economic pessimism, highlights Charlie Bilello.
The ‘Elevator Up’ Market Surge
The S&P 500 has staged a staggering comeback, gaining 12.5% over four weeks to mark its 20th biggest advance since January 1950.
Chief Market Strategist at Creative Planning, Bilello, highlighted the unprecedented nature of this rapid rebound. Unlike previous massive market rallies, this surge did not emerge from the depths of a traditional bear market. Instead, the index experienced a modest 9.8% decline before rocketing upward. Bilello describes this unusual price action as “stairs down and elevator up.”
The ETF tracking the S&P 500 index, State Street SPDR S&P 500 ETF Trust (NYSE:SPY) has also returned 12.59% over the last month, 4.50% year-to-date and 29.61% over the year.
Despite the lack of a major preceding crash, history suggests the momentum could continue. Bilello notes that “strength tends to beget strength” in equities.
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