Happy Birthday, Bull Market!

March 11, 2014

Five years ago this past Monday, the S&P hit rock bottom during the financial crisis, closing at 676.53. Since that time, despite the Fiscal Cliff, a goby-the-numbers-happy-birthday-bull-market/vernment shutdown and near default, a debt crisis in Europe, as well as a slew of other setbacks, the S&P closed at a record high of 1878.04 this past Friday, 151% increase since March 9, 2009.

To celebrate the bull market's birthday - I've added below the returns of some companies of interest since the bottom of the market in 2009 (These are not recommendations to buy).

The companies listed above are all well and good, and given that the bull market is now five years old, we should be due for a correction of some sort, correct? I've been hearing this question a lot lately, along with, "the market's too high," "we're due for a 10% correction," and so on. My response has been, "why?" Personally, I don't know when the next bear market or correction is coming, but over the course of history, bull markets typically end due to a recession, or the anticipation of a recession, which inevitably causes people to sell stocks and, at present, none of that is happening. However, that in no way implies that the markets will continue to shoot skyward with no end in sight, only that interest rates remain historically low, and that the economy is slowly improving - signs that the bull market may still have some room to run. I'm happy to have my clients own stock in large, established companies that make great products and pay increasing dividends, and even with the market at record highs, I'll refrain from attempting to time the market (it's a losing game).
Chuck Wade, Financial Advisor

(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).