{"id":41945,"date":"2023-07-29T08:57:56","date_gmt":"2023-07-29T12:57:56","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/heres-how-long-the-stock-market-rally-may-last\/"},"modified":"2023-07-29T08:57:58","modified_gmt":"2023-07-29T12:57:58","slug":"heres-how-long-the-stock-market-rally-may-last","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=41945","title":{"rendered":"Here\u2019s how long the stock market rally may last"},"content":{"rendered":"
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Stock-market rallies always end. They also make it easy to forget how difficult it can be to avoid the temptation to sell into a declining market, which some investors may now regret having done during the brutal beating in 2022.<\/p>\n

Here\u2019s why most investors shouldn\u2019t try to time the stock market.<\/p>\n

Then again, corporate chief financial officers are pretty good at timing purchases and sales of their own companies\u2019 shares, as Mark Hulbert reports.<\/p>\n

\n

The Dow Jones Industrial Average
\n DJIA,
\n +0.50%<\/bg-quote>
\n ended a 13-session winning streak on Thursday, as investors were spooked again by strong economic numbers.<\/p>\n

The Federal Reserve\u2019s cycle of interest-rate increases has helped bring down official inflation numbers, but economic growth in the U.S. has been accelerating, according to government data. Predictions of a recession are being replaced by expectations for a \u201csoft landing\u201d among money managers interviewed by Vivien Lou Chen. <\/p>\n

These market patterns, shared by Denise Chisholm, Fidelity\u2019s director of quantitative market strategy, shared with Jamie Chisholm (no relation) supply the notion that the rally in technology stocks may continue.<\/p>\n

Then again, consumer confidence surveys provide a warning about the stock market\u2019s health, according to Mark Hulbert.<\/p>\n

Market Extra:<\/strong> Why U.S. stocks and bonds stumbled on talk of a Bank of Japan policy tweak<\/p>\n

Breaking down the stock-market rally<\/h2>\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

The sectors that suffered the worst during the 2022 stock-market rout have been leading the 2023 recovery. Here\u2019s a roundup of performance for the 11 sectors of the S&P 500 with dividends reinvested through July 27, with broad indexes at the bottom:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Sector or index<\/strong><\/p>\n<\/td>\n\n 2023 return<\/strong><\/p>\n<\/td>\n\n 2022 return<\/strong><\/p>\n<\/td>\n\n Return since end of 2021<\/strong><\/p>\n<\/td>\n\n Forward P\/E<\/strong><\/p>\n<\/td>\n\n Forward P\/E \u2013 Dec. 30, 2022<\/strong><\/p>\n<\/td>\n\n Forward P\/E \u2013 Dec. 31, 2021<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Information Technology\u00a0<\/p>\n<\/td>\n\n 44.3%<\/p>\n<\/td>\n\n -28.2%<\/p>\n<\/td>\n\n 3.6%<\/p>\n<\/td>\n\n 27.3<\/p>\n<\/td>\n\n 20.0<\/p>\n<\/td>\n\n 28.2<\/p>\n<\/td>\n<\/tr>\n
\n Communication Services\u00a0<\/p>\n<\/td>\n\n 42.5%<\/p>\n<\/td>\n\n -39.9%<\/p>\n<\/td>\n\n -14.4%<\/p>\n<\/td>\n\n 17.2<\/p>\n<\/td>\n\n 14.4<\/p>\n<\/td>\n\n 21.0<\/p>\n<\/td>\n<\/tr>\n
\n Consumer Discretionary\u00a0<\/p>\n<\/td>\n\n 33.1%<\/p>\n<\/td>\n\n -37.0%<\/p>\n<\/td>\n\n -16.2%<\/p>\n<\/td>\n\n 27.1<\/p>\n<\/td>\n\n 21.5<\/p>\n<\/td>\n\n 34.2<\/p>\n<\/td>\n<\/tr>\n
\n Industrials\u00a0<\/p>\n<\/td>\n\n 12.4%<\/p>\n<\/td>\n\n -5.5%<\/p>\n<\/td>\n\n 6.3%<\/p>\n<\/td>\n\n 19.1<\/p>\n<\/td>\n\n 18.4<\/p>\n<\/td>\n\n 21.3<\/p>\n<\/td>\n<\/tr>\n
\n Materials\u00a0<\/p>\n<\/td>\n\n 10.0%<\/p>\n<\/td>\n\n -12.3%<\/p>\n<\/td>\n\n -3.5%<\/p>\n<\/td>\n\n 18.3<\/p>\n<\/td>\n\n 15.7<\/p>\n<\/td>\n\n 16.6<\/p>\n<\/td>\n<\/tr>\n
\n Real Estate\u00a0<\/p>\n<\/td>\n\n 4.6%<\/p>\n<\/td>\n\n -26.1%<\/p>\n<\/td>\n\n -22.7%<\/p>\n<\/td>\n\n 17.1<\/p>\n<\/td>\n\n 16.9<\/p>\n<\/td>\n\n 24.7<\/p>\n<\/td>\n<\/tr>\n
\n Financials\u00a0<\/p>\n<\/td>\n\n 3.7%<\/p>\n<\/td>\n\n -10.5%<\/p>\n<\/td>\n\n -7.3%<\/p>\n<\/td>\n\n 13.8<\/p>\n<\/td>\n\n 12.9<\/p>\n<\/td>\n\n 16.1<\/p>\n<\/td>\n<\/tr>\n
\n Consumer Staples\u00a0<\/p>\n<\/td>\n\n 2.9%<\/p>\n<\/td>\n\n -0.6%<\/p>\n<\/td>\n\n 2.3%<\/p>\n<\/td>\n\n 20.3<\/p>\n<\/td>\n\n 20.6<\/p>\n<\/td>\n\n 21.4<\/p>\n<\/td>\n<\/tr>\n
\n Healthcare<\/p>\n<\/td>\n\n 0.0%<\/p>\n<\/td>\n\n -2.0%<\/p>\n<\/td>\n\n -1.9%<\/p>\n<\/td>\n\n 18.0<\/p>\n<\/td>\n\n 17.7<\/p>\n<\/td>\n\n 17.2<\/p>\n<\/td>\n<\/tr>\n
\n Energy\u00a0<\/p>\n<\/td>\n\n -0.7%<\/p>\n<\/td>\n\n 65.7%<\/p>\n<\/td>\n\n 64.6%<\/p>\n<\/td>\n\n 11.8<\/p>\n<\/td>\n\n 9.8<\/p>\n<\/td>\n\n 11.1<\/p>\n<\/td>\n<\/tr>\n
\n Utilities\u00a0<\/p>\n<\/td>\n\n -3.2%<\/p>\n<\/td>\n\n 1.6%<\/p>\n<\/td>\n\n -1.7%<\/p>\n<\/td>\n\n 17.3<\/p>\n<\/td>\n\n 18.7<\/p>\n<\/td>\n\n 20.4<\/p>\n<\/td>\n<\/tr>\n
\n <\/td>\n\n <\/td>\n\n <\/td>\n\n <\/td>\n\n <\/td>\n\n <\/td>\n\n <\/td>\n<\/tr>\n
\n S&P 500
\n SPX,
\n +0.99%<\/bg-quote>\n <\/td>\n		\n 19.3%<\/p>\n<\/td>\n\n -18.1%<\/p>\n<\/td>\n\n -2.3%<\/p>\n<\/td>\n\n 19.5<\/p>\n<\/td>\n\n 16.8<\/p>\n<\/td>\n\n 21.5<\/p>\n<\/td>\n<\/tr>\n
\n Dow Jones Industrial Average
\n DJIA,
\n +0.50%<\/bg-quote>\n <\/td>\n		\n 7.7%<\/p>\n<\/td>\n\n -6.9%<\/p>\n<\/td>\n\n 0.3%<\/p>\n<\/td>\n\n 17.8<\/p>\n<\/td>\n\n 16.6<\/p>\n<\/td>\n\n 18.9<\/p>\n<\/td>\n<\/tr>\n
\n Nasdaq Composite Index
\n COMP,
\n +6.55%<\/bg-quote>\n <\/td>\n		\n 34.9%<\/p>\n<\/td>\n\n -32.5%<\/p>\n<\/td>\n\n -9.0%<\/p>\n<\/td>\n\n 27.7<\/p>\n<\/td>\n\n 22.6<\/p>\n<\/td>\n\n 32.0<\/p>\n<\/td>\n<\/tr>\n
\n Nasdaq-100 Index
\n NDX,
\n +1.85%<\/bg-quote>\n <\/td>\n		\n 42.0%<\/p>\n<\/td>\n\n -32.4%<\/p>\n<\/td>\n\n -4.0%<\/p>\n<\/td>\n\n 27.0<\/p>\n<\/td>\n\n 20.9<\/p>\n<\/td>\n\n 30.4<\/p>\n<\/td>\n<\/tr>\n
\n Source: FactSet<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Notes about the sector and index data:<\/p>\n