April 2018
Before the recent 10% corrections, the S&P 500 experienced its longest period without a 5% decline.
In the average year, the S&P 500 has three pull-backs of 5% or more, and one of 10% or more.
The recent 10% correction, amidst continued economic growth and surging corporate profits, provides an attractive entry point for many stocks.
Corporate America should greatly benefit from major themes mentioned earlier, like the synchronized global economic recovery, tax cuts, increased federal spending, decreased regulation, and record repatriation of foreign profits.
Other benefits include a healthy consumer. There is wage pressure for the first time in a decade. History suggests that as the average American earns more, he or she will immediately spend it. With the consumer representing 70% of the domestic economy, 2018 should be a year of economic growth and record corporate earnings.
There have been many good reasons to not invest over the last century, yet the 100-year annualized US stock market return is about 10%. Compounding such positive returns over a long-time horizon can produce powerful results