Stock Market Bull Run Predicted to Progress Until 2027, According to Ned Davis Research

The bull market that has been propelling stock prices upwards is likely only at its mid-point, suggests a recent study by Ned Davis Research (NDR). Currently, the market has enjoyed a stretch of 344 trading days without a significant downturn, leading analysts to believe that this positive trend has much more room to run.

The Bull Market's Journey So Far

Typically, a bull market spans approximately 694 trading days. This duration is calculated from the length of time the S&P 500 index avoids a 20% fall, which is generally considered the beginning of bear market territory. Given this average, many investors and strategists feel confident that the market rally could very well extend into the foreseeable future.

Insights from NDR's Analysts

Pat Tschosik, a prominent senior portfolio strategist at NDR, has given his outlook on the situation, saying that the current market rally's duration does not yet raise concerns for being overly extended. The sentiment chart developed by NDR further solidifies the potential longevity of the current bull market.

The concept of a secular bull market is also influencing forecasts. Such markets tend to last longer, with an average of 1,105 days. Applying this to the current market conditions, analysts at NDR predict that we're only about a third of the way into the rally, potentially stretching it out until at least 2027.

Contrasting Views and Predictions

While there is optimism, it's important to note that some experts have expressed concerns. Jeremy Siegel, a well-known finance professor, has pointed out the high valuations in the tech sector, cautioning that it could suggest an approaching bubble. Meanwhile, John Higgins of Capital Economics projects a continuation of the market's climb until at least the end of 2025, largely buoyed by the excitement around advancements in artificial intelligence.

In the context of policy, Ed Clissold from NDR has mentioned that the stock market is likely to see a significant lift after the Federal Reserve's first cut in interest rates since 2019. Predictions suggest a possible 24% jump in the Dow Jones Industrial Average following the rate cut, provided the economy avoids a recession.

Stocks, bullmarket, economy