Stocks Officially Enter New Bull Market

“A lot of people, when they get negative on the market, put 50% in cash, but unfortunately a lot of times when you get to that position, it’s just about when the market’s going to rally.” -- Peter Lynch

Good evening:

At the end of 2022, Head of Research Tom Lee forecast that the S&P 500 would rise more than 900 points to end 2023 at 4,750. This week, the S&P 500 briefly broke past the 4,325 mark, putting us ahead of schedule as we head toward the year’s midpoint. Pundits have admitted that Lee has been right for months: We believe a bull market has been underway for months, and now it’s official, with the benchmark index up about 20% since the Oct. 12, 2022 low. 

In his 2023 Outlook, Lee called for Tech to lead the way, just as it has through the first five months of the year. Yet some, including our Head of Global Portfolio Strategy and Asset Allocation Brian Rauscher, have noted that although FAANG stocks have done well, the rest of the market had not shown similar strength in 2023. 

That has changed. As Head of Technical Strategy Mark Newton noted at our weekly huddle, “The key takeaway for this week is that the market has started to broaden out in terms of its rally. In recent months, it was largely just technology that had been pa...