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A New Bull Market
April 2020
A New Bull Market
April 7, 2020
By Robert Zuccaro, CFA
The recent bear market was both one of the steepest and shortest on record. The typical bear market since World War II has witnessed an average decline of 33% over 14 months. From their peaks in mid-February, the Dow dropped 38% and S&P 500 34%. The declines for both midcap and small cap stocks were even more severe.
Today, the stock market reached a milestone on the opening bell. Both the Dow and S&P 500 have rebounded from their lows by 27% and 22%, respectively. The S&P MidCap index has chalked up a gain of 23% while the S&P SmallCap index has lagged. Based on the 20% rule, these moves signal the beginning of a new bull market.
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