A Closer Look At New S&P 500 Index Highs

So far, two things that stand out about 2017 are the historic lack of volatility and the steady upward trend for equities. The two tend to go hand in hand, however, as some of the most bullish years often occurred amid non-volatile market environments. Per Ryan Detrick, Senior Market Strategist, “2017 has been great so far for equity bulls, as the S&P 500 Index has made 23 new highs already. Although there is a long way to go before this year is over, should it keep this pace, that would come out to 51 new highs for the full year—one of the most ever.”

Be sure to check out our Midyear Outlook 2017: A Shift in Market Control, published today, to uncover what we foresee could happen throughout the rest of the year. Over the remainder of the month, we will take a closer look at our Midyear Outlook on this blog and dive further into what we expect during the second half of the year from the economy, U.S. stocks, and international markets.

Last, here’s the same chart as above, but a different take on it:

We’ve shared this chart before, but we believe it’s important to do so again since it clearly shows that new highs have tended to happen in clusters that can last years, even decades.

IMPORTANT DISCLOSURES

Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

The economic forecasts set forth in the presentation may not develop as predicted.
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Stock investing involves risk including loss of principal.

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The S&P 500 is an unmanaged index which cannot be invested into directly. Past performance is no guarantee of future results.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

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