Author: David I. Templeton, CFA, Principal and Portfolio Manager
At the close of trading today (8/16/2021) the S&P 500 Index is up 100.22% on a price only basis from its March 23, 2020 low of 2,237.40. It took the market 353 trading days to reach this feat or just short of a year and a half.
As the chart shows, except for some volatility around the U.S. election in November of last year, the market has been on a steady move higher. This year through August 16, the S&P 500 Index is up 19.27%. Certainly, some consolidation of the returns achieved since the pandemic low last year would be healthy and expected. On the other hand, as noted in my post at the end of July, A Stealth Equity Market Correction, under the surface of the market a correction seems to have occurred.
And as noted above this was a fast doubling of the market. The below chart places this doubling in context of prior bull market doubles post WWII. Undoubtedly, a 'V-shaped' contraction in February to March last year has translated into a 'V-shaped' rebound.
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