September 24, 2021

The Biggest Risk To Economic Growth And Stock Market. Is Buying Dip Still Good Strategy?

S&P 500 and Nasdaq again trade to fresh new all-time record highs. The S&P 500 has now set 54 record closing highs so far in 2021 and is up +23%. Only 1964 and 1995 saw more than 50 new highs before August was over. In fact, the all-time record for new highs in one year is 77, set in 1995. Trend watchers note that 2021 is only the 11th time since 1928 that the S&P 500 has rallied +20% or more during the first 8 months of the year. In all but the two big market crash years of 1929 and 1987, the S&P 500 managed to hold a solid double-digit gain into year end, according to Bank of America research.

Bears vs bulls

Bears, however, are quick to point out that the S&P 500 hasn’t had a pullback of at least -5% or more during the entire climb higher this year, something that generally happens about three times a year. Typically, corrections of -5% to -10% are considered healthy….

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