Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy. Appreciate the invite.
Brandy Auterson-Hurst:
So, this bull market in stocks just turned four years old this week. How does it stack up against past bull markets?
David Nelson:
Great question. And we basically went back and we looked at the data as far as to try to see as far as for comparison purposes. So, October 12th of 2022, we hit the low, and since then we’re up give or take 115%. So, a little more than double in a four-year period of time. And again, what we wanted to do is to say, how does this stack up in comparison as far as over a period of time and going back and looking at prior bull markets? And the chart that I have today is looking at that. And basically, what we’re seeing here is that this is a fairly normal type move. We’re up 108% as we speak, 4.6 years as far as this rally. That’s the far right that we’re looking at there, which is in yellow. The other ones are looking at other bull markets.
And what we see here is just some huge variance as far as bull markets are concerned. Some of them a little longer, some a little shorter. But when we look at these numbers, they’re just absolutely staggering as far as a few of these. A 600% return as far as during one of those periods of time. We’re looking at some that were 400%. So they can vary dramatically. But again, the concept is that history says that a four-year period of time is a typical bear market.
Brandy Auterson-Hurst:
Okay. So, does a bull market this old have an expiration date?
David Nelson:
Not exactly, but it’s probably getting closer than it is further from it. So, again, what we tell people is the earnings really matter. And so far earnings have held up, but that’s looking in the rearview mirror and not looking forward.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.