S&P 10,000! Is it possible?
In 2013, I wrote this >>>> https://www.seeitmarket.com/is-this-1995-stock-market-all-over-again-13490/ for SeeItMarket! I received a lot of interesting responses after I wrote that post! I recall one person calling me an idiot on StockTwits/Twitter…. Can I predict the future? No, but I do believe studying history can give us clues as to what could happen in the future!
Today, I wanted to continue to study history. The title of this post is “S&P 10,000! Is it possible?” Well, let’s take a look!
Charts paint beautiful pictures for me! Let’s take a look at a few charts below:
What the above chart shows is very interesting to me! It shows the S&P 500 and its 17 year wide range consolidation pattern that took place from September 1996 - March 2013. (17 years) Essentially, if you bought the S&P 500 in September 1996, and held until March 2009, you made no money (Not including dividends). What is also shows is a huge development that took place in 2013! The S&P 500 broke above the top part of that 17 year range! Since breaking out of that range, the S&P has nearly doubled.
Now let’s look at what caused this 17 year consolidation to take place in the S&P 500. (See chart below)
What this above chart shows is truly astonishing to see! It shows how the S&P 500 rallied more than 1400% in 18 years! (1982-2000) It’s also important to point out that the market saw numerous corrections along the way during that run! Most notably was the crash of 1987! Although, this kind of price appreciation is amazing, it’s not sustainable! This led to the 17 year wide range consolidation from 1996-2013!
Now, let’s have some fun with charts! How would a +1400% rally look like in today’s numbers? (See chart below):
Using 2009 as the low point, a +1400% rally would take the S&P to 10,000! Is it crazy to think that the S&P 500 could rally +1400% in the next few decades? Well, history shows that it’s been able to achieve that before…. Thank you for reading!
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