Washington, DC - The current bull market began on March 9, 2009, when the S&P 500 was at 676 points, hard hit by the Great Recession. Nine and-a-half years later, and the S&P 500 has rallied about 323 percent. The tech-heavy Nasdaq Composite has been the biggest winner, with a 611 percent gain, a clear testament to the strength of the tech sector. The Dow Jones Industrial Average has appreciated about 300 percent.
So far in this rally, consumer discretionary, goods and services that are non-essential but desired by consumers if they have the disposable income, have led the performance.
[M]any believe it has plenty of room to run. Consumer spending makes up about two-thirds of U.S. economic growth, and economic data shows that consumers are confident in their finances. Just on Wednesday, when discussing the latest quarterly results, Target’s CEO Brian Cornell said, “we’re currently benefiting from a very strong consumer environment — perhaps the strongest I’ve seen in my career.”
Companies have been particulary [sic] positive about tax reform, which President Trump signed into law in late 2017.
Jeff Carbone, managing partner at Cornerstone Wealth, said in a statement, “While this bull may be showing some age, we still think there is plenty of room to run, and that stocks will again set all-time highs later this year.”