The Compound and Friends: Entering Year Two of the Bull Market with Tom Lee

The 2022 bear market hit its bottom about this time last year. Even with the recent drop, stocks are up substantially and remain in a new bull market.

With the market entering the second year of its bull run, chances are it won’t look the same as the first. Understanding the current market dynamics and how to best play them can provide investors with the best way to profit going into 2024.

Over the past decade, even with the major events that have riled markets, it’s paid to stay in stocks. The S&P500 has risen by 13 percent annually, and the Nasdaq by 18 percent.

Historically, the second year of a bull market has been positive in 19 out of 22 cycles. That’s 86 percent of the time. The last time it wasn’t true was 1960.

Plus, this year’s bull market has been weaker one by historical standards. That suggests a strong second year.

Investors may be skeptical. The current short-term selloff, and the current economic data suggest weakness. However, inflation has heavily collapsed compared to last year. And the Fed is about done raising interest rates this cycle.

Those data points suggest that markets can stabilize from their current fears and move higher from here. And that next year should bode well for investors.

To watch the full interview, click here.