Here’s my weekend warning to the legion of stock market bulls: You have made bank, but don’t let that lead to complacency. <\/p>\n
Just because we are in a bull market doesn’t mean investors should ignore present-day realities in the market and the companies that power them. If you do, you might miss the early signs that the bull market could end. <\/p>\n
Look at the start of the third quarter earnings season so far. Iran war-driven inflation is smacking corporate America in the face. <\/p>\n
Read more: What is a bull market?<\/a> <\/p>\n Delta (DAL<\/a>) said on Friday its fuel expense rose by nearly $2 billion<\/a> year over year. It guided well below consensus on earnings<\/a> for the fourth quarter as a result of those soaring fuel prices.\u00a0 <\/p>\n “Fuel prices will recede. How much, how fast, I do not know, but they will,” Delta CEO Ed Bastian said on the company’s earnings call. <\/p>\n Hardly reassuring. <\/p>\n PepsiCo (PEP<\/a>) cut its full-year profit outlook on Thursday<\/a>, in part because inflation is hitting all areas of its business. <\/p>\n And do you think the banks reporting in the coming week are going to totally crush it in the backdrop of the 10-year US Treasury yield ripping higher<\/a>? It doesn’t exactly work like that. <\/p>\n In fact, bank stocks, such as JPMorgan (JPM<\/a>), Bank of America (BAC<\/a>), Citigroup (C<\/a>), Wells Fargo (WFC<\/a>), and Goldman Sachs (GS<\/a>), are all in correction territory.<\/a> Investors are bracing for unflattering news here! <\/p>\n Enjoy the good vibes for now. <\/p>\n Investors are currently living in the 11th bull market since the 1950s<\/a>, which is on track to become the seventh to complete at least four full years on Oct. 2, per a new analysis by Truist co-chief investment officer Keith Lerner. <\/p>\n Measured against every bull market dating back to the 1950s, the 119% advance sits near the middle of the pack, well below the 401% gain during the 2009 to 2020 cycle and the 582% gain from 1987 to 2000. <\/p>\n The historical average advance for a bull market in Lerner’s measurement period is 184%. Of the 10 prior bull markets, six lasted longer than four years. <\/p>\n All of this is great. Who doesn’t love a bull market? <\/p>\n Just be mindful that nothing lasts forever. <\/p>\n Brian Sozzi<\/a> is Yahoo Finance’s Executive Editor, host of the Sozzi Unleashed<\/a> morning show, the ‘Power Players With Brian Sozzi’<\/a> podcast and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi<\/a>, Instagram<\/a>, and LinkedIn<\/a>. Tips on stories? Email brian.sozzi@yahoofinance.com. <\/p>\n Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/a> <\/p>\n Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n