The Trump Rally continues and it is making stocks do something they haven’t done in over twenty years.
The S&P 500 posted its 100th consecutive trading day this week without a decline of 1% or more. According to Paul Hickey of Bespoke Investment Group, a streak as long as this hasn’t happened since 1994.
“I don’t think that it is necessarily a cause for concern, but investors should be aware that this lack of volatility is extremely uncommon, so they should expect to see volatility start to increase going forward, especially with the Fed poised to hike rates at a more consistent pace,” Hickey said to CNBC Tuesday.
“It’s interesting that with all the supposed turmoil and chaos supposedly taking place in Washington with the new administration, the market has been extraordinarily calm,” he said. “Perhaps the narrative of chaos in Washington is an exaggeration.”
In the last 67 years, since 1950, the stock market has seen the index trade without a 1% down day for 70 or more consecutive days only 21 times.
Accoerding to Craig Johnson of Piper Jaffray, the longest streak was in 1963, when the S&P 500 saw 184 straight trading sessions without a decline of 1 percent or more.
“We still like what we’re seeing in the market and we think that history is on our side saying that this is an environment where equities will continue to work higher,” Johnson said Tuesday on CNBC’s “Trading Nation.”
“If there is to be a pullback — a 1 percent drawdown in the market — we want to be buying the dips.”