Here comes the relief rally…again

ASX expected to take off at the open

a woman

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Overnight, global markets surged, with the Dow Jones up 2.3%, while the S&P 500 added 2.4% and the NASDAQ 2.5%.

European markets also soared, with the UK's FTSE 100 rocketing up 3.6%.

The S&P/ASX 200 (index: ^AXJO) (ASX: XJO)  is expected to open sharply higher this morning according to the SPI Futures index, which was up 97 points.

So much for the recent falls – they are likely to be consigned to history – like many other falls.

Anyone remember the 'almost' correction we had in October last year?

Yeah, me neither.

By early February, the slide in October had been all but erased.

Essentially, it allowed many Foolish investors to top up their holdings and get set in high-quality companies that had been sold off.

But where the market will go from here is anybody's guess.

Those preaching doom and gloom in recent days appear to have got it wrong again. Over the long term, the stock market has continued its march upwards, returning around 10% per year to investors prepared to ride out the volatility and hold stocks for the long term.

That is unlikely to change anytime soon.

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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