Ever since the Covid bailout half a decade ago, the market hasn’t been allowed to experience even the most modest selloff. There was a time when there would be a period of rising prices, about 18 months of weakness to digest the gains and shake out the weak hands, and then a resumption of a new bull market. That isn’t the case anymore. It just goes up. All the time.
If you want a sense just how lofty the market is, just observe that the chart above is the Dow 30 Industrials from 1900. The price channel neatly encompasses those tens of thousands of trading days that have taken place. Zooming in to the present, the Dow is so high that it is even a little bit above a trendline spanning one-and-a-quarter CENTURIES. Let that sink in.
