From Silicon Valley Chips to Main Street Stocks: This Bull Market Is Shifting Gears Into Phase Three

Market watchers have a fresh take on where this rally is headed. According to recent analysis from top economists, the ongoing bull market—which kicked off on September 24, 2024—mirrors the rally that started back in May 1999, and the similarities run deeper than you’d think.

Here’s the key insight: this bull market still has runway. Policy support remains firmly in place, and just like in 1999, we’re in a low-inflation environment where central banks have room to ease. The timeline and market sentiment suggest we haven’t hit the ceiling yet.

Where the Money Is About to Flow

But something important is shifting. The recovery that began with pockets of strength is now spreading across the broader market. As household savings continue flowing in, the bull market is entering a new phase—transitioning from the tail end of stage two straight into stage three.

And here’s where it gets interesting: the technology rally is pivoting. It’s moving from a narrow focus on computing power infrastructure—think GPUs, data centers, chips—to a much wider application layer. That means the real opportunities could shift from the pure hardware plays to the software and services building on top of that infrastructure.

The Revaluation of Forgotten Assets

This rotation isn’t just about tech. Traditional sectors that have been left behind now have a shot. Liquor stocks and real estate—assets that have faced headwinds—could see their narratives rewritten and valuations reconsidered as capital gets more adventurous and funds seek fresh opportunities beyond the obvious trades.

The bottom line: this bull market has legs, and the next chapter looks like diversification away from the concentrated AI infrastructure squeeze into broader, more diverse opportunities across sectors and applications.