Since the lows in March of 2020, the stock market has doubled. Think about that for a moment. The S&P 500 closed at 2,237 on March 23 of that year and closed Tuesday at 4,448 just shy of an incredible 100% gain in 17 months. Numerous reasons for this have been cited, including the incredibly loose monetary policy that has been in place for years, but went nuclear when COVID-19 surged in the winter of 2020. Toss in the WallStreetBets crowd, which had government hand-outs to trade with while locked up at home, and you had all the ingredients for the proverbial melt-up.
The truly scary situation for investors is that the market hasn’t had a 5% correction in almost a year, which is very unusual. The difficult question for investors is what to do now?
Note: This article originally appeared at 24/7 Wall St.