The AI-fueled stock rally is almost four years old

What happened

The bull market in US stocks, which Bloomberg describes as powered by artificial intelligence, is approaching its fourth anniversary. According to Bloomberg, corporate profits are very solid, the S&P 500 Index is near a record and volatility appears subdued. Bloomberg adds that the market is showing few signs of stress.

Why it matters

The S&P 500 is the index that many low-cost funds track, so when it rises, the savings of people who invest through those funds tend to rise with it. A long rally can make investing look easy, but as a general rule markets also go through drops, and a calm period does not guarantee what comes next. For a young person just starting out, the takeaway is that long stretches of gains and stretches of losses are both part of how the stock market works.