The S&P 500 exhibited the glide path of a crowbar earlier this year, falling into a bear market twice as quickly as in 1987. It then recovered all that it lost in only five months – the third-fastest recovery since WWII. Indeed, from March 23 through September 2, the S&P 500 soared 60%, versus the average six-month post-bear gain of 30%. Like the Messenger from Marathon, the U.S. equity market traditionally collapsed from exhaustion, shedding an average 8% after having recouped all that it lost in the prior bear market. Thankfully, it never immediately slipped into a new bear market. But because of (1) stretched valuations, (2) the growth-value differential recently at an all-time high, (3) the continued stalemate in Congress, and (4) the prospect of a Democrat "triple play", could this time be different?
Sam Stovall, Chief Investment Strategist of CFRA and creator of the Pacer-CFRA Seasonal Rotation ETF (SZNE), will share CFRA’s investment outlook for the market, and identify which sectors and strategies are expected to lead the way.