Longest Bull Market Ever?
The media is talking about how we are now in the longest bull market in history. By the definitions they have decided to use to determine bull and bear markets, this is true…barely. It is true that on a closing price basis, the S&P 500 has not experienced a 20% decline since 2009. This headline implies that stocks have been smooth sailing for almost a decade and that we are now in dangerous territory. What they are not discussing is that for 14 years (see chart below), the S&P 500 did nothing. That is quite a long time, and one might expect a prolonged period of strength to follow. Another alternative view is that from 2009-2014, the market was merely recovering from a prolonged period of weakness. It did not start making new highs until mid-2013, which means that we are only five years into new market territory. READ MORE: What Does the Longest Bull Market Mean? A Debate