I’ve noted several times the past few months that this year looks a lot like ’54 and ’95. Well, let’s take a quick look at things and how they stack up now.
For those that don’t know or remember, ’54 and ’95 were two of the best bull markets ever. ’13 had a great start, but has started to fade some as of late.
Here are the returns up to and after August 16.
In the end, ’13 is its own year and doing things like this are more fun and games than anything. Still, I’ve noted some concerns the past few weeks and I do think some more weakness could happen. I don’t expect a huge pullback, but maybe a little more pain to flush out the bulls and get a good spike in fear – then an eventual move to new highs during 4Q.
Take one more look at that chart above. Both ’54 and ’95 formed some pretty major lows in late August/early September.
A little more weakness here and now could be needed, before we follow the previous bull markets lead to new highs later this year.