NEW RECORD ?: If history repeats itself, it can lead to a new record. The picture is an illustration and not Sam Stovall. Foto: BRYAN R. SMITH
– The S&P 500 index has on average reached a new all-time high 8 days after closing within 1 percent of the record, says Sam Stovall, investment manager at the analysis company CFRA, according to MarketWatch.
All last week, the index, which contains the 500 largest American companies, flirted with a new record and was 0.4 percent away from the record at closing time on Thursday.
The current record was set on 19 February this year when the index ended at 3,393.52 points. At closing time on Monday, the index showed 3,381.99 points, up 0.27 percent from before the weekend.
8 days
Sam Stovall has analyzed the historical development of the S&P 500 index and found that it takes an average of 8 days before the index has reached an all-time high after closing within 1 percent of the record level. The longest “waiting period” was 21 days below the bear market in 2000-2002 and a 20-day waiting period after the bear market in 2007-2009.
– If history repeats itself, and there is no guarantee of that, then the S&P 500 will reach a new record by the end of August, says Stovall.
The investment manager is not afraid that share prices have reached the ceiling yet, despite the fact that the market has recovered strongly since March. At the same time, he warns investors that they “should be prepared for a certain profit peak”.
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