May 4, 2016
March 7, 2016 ~ Weekly Update

Is the Bull Market Too Old? – Financially Simple

Is the Bull Market Too Old? WEEKLY UPDATE – MAY 2, 2016 As of Friday, the S&P 500 is on the second-longest bull market run in history, surpassing the 1949-1956 bull market that lasted 2,607 days. The longest bull market in history ran between 1987 and 2000, lasting nearly 4,500 days.[1] After months of volatility and challenges on the horizon, can the bulls keep running? In the pro-bull column, we have a few major points to consider: Bull markets don’t just die of old age. History shows us that bull markets ended because of a variety of shocks like oil price spikes, recessions, bursting asset bubbles, geopolitical issues, and extreme leveraging.[2] While the past doesn’t predict the future, we should evaluate threats to market performance instead of worrying about birthdays. Economic indicators support growth. Recessions have accompanied or presaged many previous bear markets. Even when recession risks are higher this year, most economists don’t see an economic downturn in the short-term future.[3] We have experienced healthy pullbacks. One of the markers of a bull market top is elevated investor optimism and unsustainable high stock valuations. Since the last S&P 500 market high in May of 2015, markets have retrenched several […]