The Case for the Continued Stock Bull Market
We have been in stock bull market since the financial crisis in 08 and the after effects in 09. Basically every year after that stocks have performed higher than usual and many believe that this bull market will soon be coming to an end. I personally think we will see some correction in the next few years, but there are many out there who think that not only will the bull market continue, but it might continue to a point where prices could go double or even triple as much as they are now.
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The argument for the continued bull market is mostly using historical data to see what has happened in the past on a much larger scale. If we look back the exponential growth in the stock market is nothing compared to what we see today, in fact our 9 year bull market looks pitiful compared to the bull markets of the past. There are many complex reasons for this, but if history truly does repeat itself we really havent had a fantastic level of growth in the last 20 years, mostly due to the dotcom burst and then the financial crisis only 8 years later.
Many are saying that on a larger scale there still needs to be compensation for those lost years of investment, which I personally will say that the past doesnt accurately reflect the future in many cases and the world international market isnt the same as it was in the 20s. In my opinion we should look less at the historical reasons and more at the other reasons they usually give which I might buy a bit more. One of these reasons is with the tanking bond market which has a ton more money than equities, people will be moving money over so they dont lose out, which I could potentially see.
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In addition there are governments who hold fixed income bonds that are thinking about just buying equities instead, which I am skeptic that would really happen. I think theres a better chance that pension funds and other big players in the fixed income market will move money into securities. Governments try to stay out of owning equities, with some exceptions like state owned companies, which really only occur in countries more on the socialist spectrum. The final reason which I actually do buy on a long term scale but maybe not on a short term one, is that companies are becoming more profitable because of less staff and are able to keep costs down. This is an interesting idea I want to explore further in the future.
If there was a big move from fixed income over to securities we would definitely see prices soar and continue the bull market, but I think many companies are already overvalued. I dont know what is going to happen I just wanted to talk about the case that some are making for the future. I think in the long run it doesnt matter much, but we are definitely in a weird place at the moment when it comes to the stock and bond markets. If we were to see the bull market continue im sure many would be very happy but it probably wont be sustainable for the long term.
-Calaber24p
According to ZH, the most recent sell-off was halted by the
FED: https://www.zerohedge.com/news/2018-02-27/did-fed-save-wall-street-temporary-qe4
The bankers know they can't afford another collapse like in 2008, so they'll keep propping it up. How long this charade keeps going is anyone's guess.
I read that article as well, it was interesting but im skeptical of ZH these days.
Stock prices can double or triple because of coming hyperinflation....but in the end it will CRASH...
![](https://steemitimages.com/0x0/http://theforecaster-interactive.com/wp-content/uploads/2015/04/Yen_money_waterfall_small.gif)
When it comes to the economy, most people aren’t worried about anything when there is everything to worry about, including rising inflation, surging price of oil, the tanking dollar, and warning signs in the bond market. On top of this all we have a surging stock market with litle correction recently. It’s only matter of time when we correct to fair value. I don’t think stock market will crash, but I think that 20-25% correction is on the way.
I couldn’t agree more, a 20-25% correction looks very possible. Our bond market is garbage just making bonds and the debt United States owes China could doom us if request for their money
I agree I think that a 25% correction is probably going to happen as well and I think this year will most likely be a down year for the market.
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Yes this is true when there is price goes high beyond expected then it fill surely fall for correction so new investor can invest
Even at higher price people love to sell and this is also the factor that market surly come back.
Good article bro
I personally have trouble investing new money in stocks now because everything is so pricey. Do you think when interest rates inevitably rise it will kill the bull?
In my opinion yes. I think interest rates are going to scare many people into short term bonds and the market will correct.
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