Part 3/12:
Recent earnings, such as Netflix's, served as a bellwether—initial dips were seen, but the broader trend remains tethered to expectations of a strong medium-term rally. The backdrop is characterized by a market that, since the Lehman crisis and COVID-19, has been buoyed by unprecedented fiscal and monetary stimulus. These policies drove U.S. stock market gains, with the market rising approximately 14% during a global pandemic—remarkably outperforming average annual returns of around 9%.