The Greatest Bull Market in Decades, But a Correction First
The I/O Fund analyzes the current 17-year bull market, noting that while AI stocks have significant growth potential, a market correction is likely imminent. The report compares current trends to historical data dating back to 1880 to justify its cautious outlook.
Why it matters
Provides investment analysis for those navigating the current AI-driven market cycle.
For investors who think they’ve missed out on AI, the best is yet to come. But first, there will be a notable correction.
Since March 2009, the S&P 500 has experienced five declines of roughly 20% or more. Most were followed by relatively quick recoveries, reinforcing the belief that “buying the dip” is a reliable long-term strategy. However, these declines occurred within a broader secular bull market, which is an important distinction.
Understanding the secular trend often matters more than stock picking, as even the very best stocks can see extended periods of volatility if the secular trend reverses. In this report, we compare the current bull market to secular trends going back over 150 years to show why it is an extreme outlier.
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