By: Gerald Sparrow President & Founder, Sparrow Capital Management, Inc.
What is a bull market, and more importantly, who determines if we are in one?
Technically speaking, a bull market is defined as a 20% gain in a stock market index, such as the Standard & Poor’s 500, from a closing low.
So are we in one? Technically, no. The S&P 500 hit a low of 3,583 on October 10, 2022. So a 20% gain would put the S&P 500 at right about 4,300. As you can see from the accompanying chart, the S&P 500 is still below that level.
The accompanying chart also shows how challenging the stock market has been since October 2022. When stock prices rally higher, those gains are often met by selling pressure. So it’s easy to understand that it has been a difficult period to remain focused as an investor.
It’s also a period that reminds us how important it is to “tune out the noise” and focus on what you can control, like your time horizon, risk tolerance, and goals.
—
Originally Posted June 28, 2023 – The most unloved bull market in history?
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.
Leave a Reply
Disclosure: Interactive Advisors
This material is not intended as investment advice. Interactive Advisors or portfolio managers on its marketplace may hold long or short positions in the companies mentioned through stocks, options or other securities.
Pursuant to the Investment Management Agreement between Interactive Advisors and its clients, all brokerage transactions occur through Interactive Brokers LLC, an affiliate of Interactive Advisors. Interactive Advisors does not offer services through any other broker-dealer. The use of an affiliate for brokerage services represents a conflict of interest. Interactive Advisors clients acknowledge this conflict of interest and authorize Interactive Advisors to execute transactions through Interactive Brokers LLC when they open an Interactive Advisors account. Clients should consider the commissions and other expenses, execution, clearance, and settlement capabilities of Interactive Brokers LLC as a factor in their decision to invest in an Interactive Advisors Portfolio. Interactive Advisors believes it can meet its best execution obligation by trading its clients’ trades through Interactive Brokers LLC. While there can be no assurance that it will in fact achieve best execution, Interactive Advisors does periodically monitor the execution quality of transactions to ensure that clients receive the best overall trade execution pursuant to regulatory requirements.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Interactive Advisors and is being posted with its permission. The views expressed in this material are solely those of the author and/or Interactive Advisors and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Seems like every bull market is deemed “the most unloved bull market in history”.