The S&P 500 (^GSPC) is about to reach a significant milestone: its sixth straight month of gains. Ryan Detrick, Chief Market Strategist at Carson Group, joins Market Domination to discuss current market dynamics.
Detrick highlighted a pattern in October’s trading. The S&P 500 index didn’t move more than 1% for the entire month, a phenomenon that has only happened twice in the past 50 years. He notes that this is one of the most volatile months of October before the election.
As the bull market enters its third year, Detrick compares it to the past five similar market periods. In these cases, bull markets averaged 288% gains over eight years, he explains. With the current bull market only up 62% after two years, Detrick is optimistic: “I don’t think a recession is on the horizon at all.”
However, Detrick points out that the main risk to this bull market is the Federal Reserve.
“We’ve been thinking of inflation as last year’s problem,” he says. He acknowledged that markets have been up for five consecutive months, but warned that the Fed could make “policy mistakes” on monetary policy.
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This post was written by Angel Smith
