Andrew Button is a freelance financial writer with extensive experience writing about stocks, real estate and managed products. His portfolio consists mainly of blue chip dividend paying stocks and index funds. He has completed the Canadian Securities Course and passed the CFA Level 1 exam.
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Latest posts by Andrew Button (see all)
Is NVIDIA Stock Too Expensive? What Investors Need to Know - March 4, 2024
Where Will TD Stock Be in 5 Years? - March 4, 2024
3 No-Brainer Stocks I’d Buy Right Now Without Hesitation - February 29, 2024
Recently, the S&P 500 officially entered a new bull market. At its peak level of 4,425 points, it was up more than 20% from the lows, which is the definition of a bull market. In fact, some particular sectors, like big tech, were up more than 30% from the lows. It has been an incredible run to watch. In this article, I will explore some stocks I bought before and during the latest bull market.
Banks
I was buying bank stocks pretty heavily during this year’s bull market. When prices were rising, banks were one of the only sectors not getting too expensive, so I went ahead and bought some.
The Toronto-Dominion Bank (TSX:TD) is one bank stock I bought on a dip during the Spring banking crisis. In March and April, several U.S. banks failed because they didn’t keep enough liquidity on their books to pay their depositors who rushed to withdraw their funds. Big Canadian banks fell right along with the struggling U.S. regional banks, even though the liquidity situation at TD and other Canadian banks was fine. TD’s Q2 earnings, released after the banking crisis got underway, confirmed that the liquidity situation was quite good. So, I figured that the TD Bank sell-off was overdone, and bought some more of it.
Another bank I bought was Bank of America. That’s a U.S. bank that, like TD, is known for excellent liquidity and risk management. Its earnings grew about 15% in its most recent quarter. Next month, we’ll see if it was able to keep the growth going in Q2.
Semiconductors
Another category of stock I bought early in the 2023 bull market was semiconductors. Specifically, Taiwan Semiconductor Manufacturing (NYSE:TSM). Taiwan Semiconductor Manufacturing is a beaten-down semiconductor name. The company manufactures 59% of the world’s computer chips. Unlike many semiconductor companies, which saw their earnings fall precipitously last quarter, TSM’s earnings were about flat in its home currency (down slightly in U.S. dollars). Overall, Taiwan Semiconductor performed better than any other semiconductor company last quarter. If artificial intelligence (AI) chips end up being as big a deal as people think they’ll be, then TSM will put out another good quarter for Q2.
Big tech
Last but not least, I bought some big tech during the recent bull market. Specifically, Apple (NASDAQ:AAPL). Apple stock is expensive now, but it was pretty cheap when I bought it at $130 near the bottom during the tech stock crash. I bought more of it at slightly higher prices this year. Apple has a great competitive position. The iPhone maker has the world’s strongest brand according to several market research companies, and an integrated ‘ecosystem’ that encourages customers to buy multiple products instead of one. It all adds up to a lean, mean cash machine that has rewarded investors handsomely over the years.
Recently, Apple released the Vision Pro, a brand new VR headset. The company’s first new product category in years has the potential to change the game in virtual reality (VR). If it does, then Apple shareholders should be rewarded.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Fool contributor Andrew Button has positions in Apple, Bank of America, Taiwan Semiconductor Manufacturing, and Toronto-Dominion Bank. The Motley Fool recommends Apple, Bank of America, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The current bull market started in October 2022, which means it is now just less than 19 months old. If it ended now, it would be the shortest bull market ever. Most bull markets last much longer. The last 12 bull markets have averaged more than five years.
With stock indexes at all-time highs, it seems we are in the midst of a new bull market. While much of the market's recent gains have come from a handful of stocks, the rally has begun to broaden in recent months. Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher.
According to data from investment group Bespoke, the average S&P 500 bull market since 1929 has lasted 1,011 days -- or just under three years. There were a few outliers, such as the bull markets from 1987 to 2000 (which lasted a whopping 4,494 days) and 2009 to 2020 (3,999 days).
The current bull market started in October '22, which means it is now just under 19 months old. Would you believe that if the bull ended here and now this would make it the shortest bull market ever? That's right, most bull markets last much longer, with the past 12 bull markets averaging more than five years in total.
The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.
Economic growth actually accelerated above its 10-year average in 2023. That resilience, coupled with a fascination about artificial intelligence (AI), changed investors' collective mood. The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official.
The Big Money bulls forecast that the Dow Jones Industrial Average will end 2024 at about 41,231, 9% higher than current levels. Market optimists had a mean forecast of 5461 for the S&P 500 and 17,143 for the Nasdaq Composite —up 9% and 10%, respectively, from where the indexes were trading on May 1.
Generally, a bull market occurs when there is a rise of 20% or more in a broad market index over at least a two-month period.” During a bull market, investors are generally enthusiastic about a strong economy and solid job growth. The longest bull market in history started in 2009 and extended through 2020.
Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” In this quote, John Templeton, a renowned investor and mutual fund pioneer, expressed his observations about the typical lifecycle of financial markets, particularly the stock market.
We can always go back to worrying; we are still in a bull market for fear. She points out that she came of age during the bull market—a period of nearly uninterrupted wealth creation and stock price rises.
The Dow Jones Industrial Average closed above the 40,000 mark Friday for the first time in its 139-year history. The blue-chip index initially crossed the key threshold early Thursday but ended that day lower.
Few would dispute that the crash of 1929 was the worst in history. Not only did it produce the largest stock market decline; it also contributed to the Great Depression, an economic crisis that consumed virtually the entire decade of the 1930s.
The opposite of a bull market is a bear market, which is typically defined as stocks falling by 20% or more from a recent peak. Bear markets are often accompanied by recessions, falling investor confidence, and declines in corporate profits.
After a spectacular 2023, stocks are off to the races again in 2024. YTD, the Dow is up 2.72%, the S&P is up 7.28%, and the Nasdaq is up 6.41%. (And that's on top of last year's 13.7%, 24.2%, and 43.4% respectively.) And the outlook is for another fantastic year.
Higher highs & higher lows: Higher highs and higher lows is the first step to having an uptrend. ...
A More “Accommodative” Federal Reserve: The Federal Reserve, which controls interest rates, has a significant impact on liquidity and thus, market direction.
A bull market is a period of upward-trending prices. A new bull begins once prices rise at least 20% off the most recent market bottom. Generally speaking, optimism is high and investors and consumers feel confident, pushing company earnings and stock prices higher.
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