To say we’re in a bull market is an understatement. The Dow Jones and the S&P 500 both finished the week at record numbers. The S&P 500 made history last week when it surpassed 4,000 for the first time in history and it hasn’t looked back since. On Friday, the S&P 500 closed at a record setting 4,128.80 and the Dow Jones closed at a record 33,800.60.
This record setting week is most likely in response to Federal Reserve Chairman Jerome Powell reassuring investors the central bank won’t raise interest rates, President Biden’s infrastructure plan, and excitement about the first-quarter earnings season starting next week. Analysts expect S&P 500 firms to report their highest earnings growth in more than a decade. Recently, there has been worries about treasury bond rates rising but Mr. Powell has been working diligently to reassure the public that there won’t be any major policy shifts while unemployment is high. Mr. Powell reiterated that the Fed was looking for “actual progress” rather than “forecasts” for progress toward employment and inflation goals.
Giant names like Apple, Amazon, and Tesla have been leading the growth in the stock market. Blue-chip stocks like Microsoft (MSFT), Alphabet (GOOGL) and Facebook (FB) each recorded intraday and closing highs on Thursday. While tech stocks have done outstanding, other sectors have not had the same success. Crude oil and gold are both down along with a number of cyclical and value names.
There has been speculation about how long this bull market will last but it isn’t showing any signs of slowing down. With the market flying high, are you jumping on the bandwagon and buying in or are you waiting on the sidelines for a dip? Leave me a comment on what strategy you’re taking and what companies you’re investing in during this bull market.