In the last twelve years, the North American indices have been the scene of an extraordinary ride of the bulls, unique in the duration and dimension of the gains, with few mishaps where the “flash” crash of 2020 stands out when the market suddenly corrected about 30% to also recover suddenly until reaching new historical highs. These were highly volatile movements that left the feeling of having been minor fluctuations, which was not the case, with the S&P500 entering Bear territory, even for a very short time, which generated a discussion about whether the Bull market started in 2009 had come to an end.
However, the way in which the indices recovered meant that the prevailing sentiment was for the continuation of the Bull market, an upward direction that could last for a few more months or years, considering that historically Wall Street does well with the rise. Interest rates, at least until they reach 3% to 4%, as this means a thriving economy with substantial growth in corporate profits, which sustains the valuation of bonds. In other words, the scenario for the coming period remains with favourable prospects for the Bulls to have space to maintain control of Wall Street, with the theme of the pandemic decreasing in importance and inflation remaining in the background of the market noise.
