S&P 500: The Bull Market That Won't Die

Grassroots Trading 3.16K Followers Follow Summary The U.S. equity market's persistent strength is underpinned by structural forces beyond traditional fundamentals. Passive investing and automatic 401(k) flows create a reflexive loop, disproportionately benefiting large-cap stocks via market-cap weighting. Corporate buybacks, totaling ~$1.2 trillion over the past year, are the largest structural source of equity demand, supporting prices and EPS. Despite high household debt and economic bifurcation, consumer spending remains resilient, delaying a potential bearish inflection point. Marcio Silva/iStock Editorial via Getty Images Thesis With bullish momentum intact, the S&P 500 ( SP500 ) remains near all-time highs. Strong earnings, among other things, definitely give the rally reason to charge on, but stretched valuations and meaningful inflation risk make it This article was written by Grassroots Trading 3.16K Followers Follow As of August 2026, I'm globally ranked in the top 1.5% of investment experts and financial bloggers on TipRanks. My goal is to clarify the complexities of investment opportunities and risks for both individual and professional investors, while also helping newer investors build confidence as they learn to evaluate opportunities with a disciplined, long-term mindset, so please follow me if this is the type of research you’re looking to read. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY, MSFT, AMZN, NVDA, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.