Chart of the Day - Tuesday, March 23rd, 2021

Today’s Chart of the Day was shared on Twitter by Ryan Detrick (@RyanDetrick). It's been exactly one year since the market bottomed on March 23rd, 2020. At that point, the S&P 500 had tumbled more than 33% in just 33 trading days, marking one of the sharpest drawdowns that this generation of market participants has ever witnessed. As you know, this story has a happy V-shaped ending to it. The S&P 500 is up nearly 75% since then, which is the strongest first year of a bull market. Ryan points out that the S&P 500 has gained an average of 16.9% in the second year of a bull market, however, a double-digit correction should be anticipated. Keep in mind, the average length of a bull market is around five years. From this perspective, it's not all that crazy to think that the current bull market could continue in 2021 and beyond. For more on this, check out the full note here.