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What Happens When Stocks Make New Highs?

By Michael Batnick, CFA
The Irrelevant Investor, LLC

Your friend tells you to close your eyes and use your imagination.

Picture a world where a virus spreads across the planet, infecting 20 million people and killing nearly 750,000 of them.

The economy shutdown for months on end, leading to the worst GDP contraction and highest unemployment numbers since The Great Depression.

Now, your friend asks you, “What happens to the stock market?”
There are a million different answers you could give, but not a single one of them would include the words “all-time high.”

It took just 126 days to get here, and by here, I mean to levels never seen before. For context, the median number of days between all-time highs for the S&P 500® Index is 90.

This is a horrible year by most measures, and yet fairly run of the mill for the stock market, at least using this metric.

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