May 20, 2026
Current Market Activity
Who would have thought during all the fear earlier this year, that the S&P 500 would be hitting all-time highs just a few months later?
Many companies have seen excellent performance in the last month from artificial intelligence optimism. Stocks of companies like Nvidia, nVent Electric, Palo Alto Networks, and Google have all been continuing to climb as more investors’ attempt to buy their share of the A.I. revolution.
With artificial intelligence and cloud computing driving various market sectors higher, many investors are continuing to ask …
How Much Higher Will The Market Go?
Do I wait for a pullback? Do I invest in the same companies I could have bought for cheaper earlier in the year? I know I want to get money invested, but can the market really go higher from here?
Great questions! After all, we have had an incredible few years of market gains since the 2022 lows. While past performance is not indicative of future results, it can help us to make sense of our current market by looking at previous bull market performance.
The chart above shows the percent increase from previous bull markets after significant market drops, along with the average return of these bull markets at 192%. As you can see, we are well below the average performance for previous bull markets the S&P 500 has experienced. If we even reach the point of an average bull market price movement, we would be roughly 46% higher from the publishing of this chart on April 28th, 2026. This would put the value of the S&P 500 Index at over $10,000 compared to today at $7,350. Incredible.
Sea-Sick Headlines
Cruise ship stocks have seen some volatility related to high oil prices and a recent disease breakout.
However, our two core cruise companies, Royal Caribbean and Viking have long-term oil contracts that stabilize their costs and also have no such virus breakout.
We continue to recommend holding positions in high quality companies such as Royal Caribbean and Viking.
What now?
While the recent recovery and performance of the stock market has been strong, our firm continues to see many of the greatest companies in the world trading at what we see as “bargain” prices. Opportunities are especially attractive within the sectors of travel, insurance, and technology.
Thank you!
If you are considering the implications of any life transitions on your financial plan, do not hesitate to give us a call to discuss. We are honored by the trust your families place in our firm, and it is always our pleasure to help you.
If you would like to give us your thoughts, even a short email, please do so. We would love to hear from you.
Warmest regards,
Dougherty Investment Advisors
A Tradition of Excellence
4048 Deltona Blvd | Spring Hill, FL 34606
