Broker Check

Weekly Market Update January 19, 2023

January 20, 2024

Weekly Market Update January 19, 2023, Fed Funds 5.25% - 5.5%, US Ten Year 4.23%, Oil $73.43

 

 

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One Week

Three months

One Year

Dow Jones Industrial

37,863.80

+0.8%

+14.52%

+13.70%

Standard & Poor’s 500

4,839.81

+1.22%

+14.73%

+22.11%

Nasdaq Composite

15,310.97

+2.99%

19.21%

+49.54%

 

Stocks finished the week higher, with the Standard & Poor’s 500 Index reaching an all-time high of 4,869.72 (last reached on January 4th of 2022). Today’s record close marked the 513th day since the last record-high closing for the S&P 500. We have not seen a stretch of time this long between new highs since 2007 to 2013. The chart below shows some of the longer historical periods between record highs of the S&P 500.

 

 

With equity valuations climbing, " calling a top " might be tempting.  However, equities have performed well in the periods after setting new highs. The chart below shows dates when the S&P 500 Index closed at an all-time high after at least a gap of at least one year and the index’s performance after these highs.


 

 

There are a lot of numbers – but the most important ones are in yellow. For the past dates, when the S&P 500 set new highs (after a gap of one year since the last high), the market's average performance was +14%. The market ended up positive following these dates 93% of the time.

 

So, while it may make sense to trim some positions if they have become outsized in your portfolio (a good problem to have), historically speaking, markets can continue to grind higher. Just because stocks are at an all-time high does not mean they cannot go higher.

 

 

Have a great weekend,