This chart tracks the movements of the S&P 500 since the start of the bull market back in October 2022 in purple…
And the 1990s bull market in blue.
As you can see, based on the price action alone, the parallels are clearly there.
There were painful drawdowns and corrections in the shorter and medium terms…
Although on a longer timescale, the market just kept moving up (as it generally tends to do).
But even beyond price action, there are also striking similarities in the narratives being played out around stocks.
There were also periods of consistent rate increases and rate cuts by the Fed – just like now.
The Internet was only just coming into fruition – just like AI is today.
There was plenty of hype and an almost equal amount of skepticism for both the Internet then and AI today.
Now, am I saying that this bull market will go on for 2+ more years (which is what the chart would seem to imply?).
Most definitely not.
Now, I do expect this market rally to last at least until the end of this year and most likely next year as well.
But it would be foolish to make any sort of realistic predictions beyond that.
The point of today’s chart is not to tell you exactly how much longer this bull market can last.
The point is to show you that – despite what the bears would have you think…
This bull market has a very good chance of lasting a lot longer than they would tell you – regardless of AI skepticism and talk of overvaluations.
In this market, if you’re staying out – you’re missing out, period.
Because I promise you this…
The smart money is most definitely NOT staying out.
In fact, they’re likely not even allowed to by this point in the year.
I explain what I mean below.
P.S. My next edition of 2 Trades in 2 Minutes drops tomorrow. They’re completely free – but you’ll want to act on them FAST. So text the word “trade” to 87858 and get those trades sent to your mobile the second they’re released.