Dow Jones Newswires Tomi Kilgore reports:
Time flies when you’re making money. And on the second anniversary of the bull market’s beginning, there is no reason for stock investors to expect that to change just yet.
On March 9, 2009, when the Dow Jones Industrial Average closed at 6547 and the S&P 500 Index at 677, investors were fearing a repeat of the Great Depression. Two years later, and after rallies of 86.6% and 95.4%, respectively, investors are feeling some growing pains.
Economic data indicates the tailwind behind the economy’s recovery is strengthening. Meanwhile, the rise in oil prices to a 2 1/2-year high is a potential headwind. And after such big gains for stocks in a short period of time, investors fear a significant correction is coming, they just aren’t sure when.
Since the timing of bullish and bearish forces isn’t quite in sync, investors have had a difficult time picking sides. Should they wait to buy after a pullback, or wait for another move higher before they start selling? As a result, stocks are going nowhere fast.
Since closing at a multi-year high 2 1/2 weeks ago, the Dow has closed up or down by triple digits five times, the same number as in the preceding 2 1/2 months. Meanwhile, the Dow has lost just over 1% since Feb. 18.