18.08.22 Bull Run

August 22, 2018


9 Yrs, 5 Months & 13 Days

Stocks on track to hit the longest-running rally in stock market history.

Why the timing matters.

Why It Matters

  • Stocks’ “bull market” (sustained period when stocks are rising & expected to continue to rise) on track to be longest in history.
  • Surprising after stocks plunged 50% during the financial crisis ending March 9, 2009.
  • Gains have added trillions of dollars to household wealth, boosting the economy and retirement savings.

Important Context

  • Last time stocks rose for this long was theA dot-com boom (October 1990 – March 2000).
  • However, during the 1990s run, stocks rose 417%. That’sA nearly 25% *MORE* than this current bull market run,A according to LPL Financial.
  • Bottom line: it’s the longest bull market, but not necessarily the greatest.
“This bull market has been breathtaking…valuations in general have become stretched; however, corporate earnings have been strong, and I believe US stocks are likely to continue to outperform in the shorter term given the strength of the US economy and the perceived safety of US stocks in the midst of trade wars.”

Kristina Hooper, Invesco's chief global market strategist, as the S&P 500 rose to a new all-time high Tuesday.

Strong earnings growth continues to power the stock market, but experts warn investors to continue to watch trade disputes and possible higher interest rates. Timing matters: the Federal Reserve, which sets interest rates, meets on Friday to discuss the economy & policy.

by Jenna Lee,