Why the Bull Market Has Plenty More to Run

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Why the Bull Market Has Plenty More to Run

(New York)

Many are considering whether the current 8-year bull market may be on its last legs. One of the key warning signs for bull markets has been that towards the end, small groups of stocks tend to create the majority of gains. That is currently occurring as tech stocks surge, but Barron's dismisses the idea, saying that just because it is happening, it does not mean stocks will fall. The reason why Barron's dismisses the argument is that the last 20+ years of market performance shows that it is perfectly normal that a small handful of stocks provide the bulk of gains in the market, so it is not on its own a troubling signal.

FINSUM : This is a good point to make as the market (and journalists) spend a lot of time worrying about concentrated gains, when in reality they have proven quite common and do not seem to be an indicator of much.

Source: Barron's

  • stocks
  • bull market
  • concentrated gains

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , stocks

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