The powerful initial rebound in the stock markets between March and September last year, driven by valuation, is very typical of the initial "hope" phase of a bull market, which generally begins during a recession when earnings are still falling. 

This phase is usually followed by what we call the "growth" phase, which is the expectation for this year, as global stocks generate earnings growth of around 35%. 

Often, the transition between the two phases is marked by increased volatility and a market setback as investors anticipate, or begin to doubt, the recovery that has been priced in, as we saw after the initial strong rally in the stock markets in 2009.

The typical pattern of the stock market cycle

S&P 500. Average market cycles since 1973

We are currently entering the "Growth" phase of the new cycle.