If it feels like the stock market has been setting a record high every few days recently, that’s because it has.
The Standard & Poor’s 500 index has closed at an all-time high 23 times since March 28. That’s when the index first closed above its prior record set on Oct. 9, 2007 – before the Great Recession. The records have often come in flurries: Between July 18 and last Monday, the S&P 500 set a record for three consecutive days.
Such record-breaking performance can trigger a fear of heights for investors: Is it a sign that stocks have become too hot and are destined to plummet?
History shows the market can keep going, says Sam Stovall, chief equity strategist at S&P Capital IQ. This bull market, which began in March 2009, has recorded 23 record highs. Stovall found that other bull markets have posted many more record highs before petering out. The current tally is the third fewest among the 11 bull markets that S&P Capital IQ has counted since 1949.Associated Press