When investors look back on 2020, they’ll likely remember it as the year that crammed in about a decade’s worth of volatility. During the first quarter, the widely followed S&P 500 (SNPINDEX: ^GSPC) shed more than a third of its value in just 33 calendar days. For context, the S&P 500 has historically taken an average of 11 months to decline at least 30% during bear markets.
We’ve also witnessed an almost unrelenting rally in equities since the March 23 bottom. The S&P 500, Dow Jones Industrial Average (DJINDICES: ^DJI), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have surged by 66%, 62%, and 86%, respectively, as of last weekend. In fact, it took less than five months for the S&P 500 to reclaim new highs, which marks the quickest rebound from a bear market in history.
These gains could be just the tip of the iceberg for all three major indexes. As we prepare to move headlong into 2021, here are four catalysts that could ignite a raging bull market.