Skip to content

What’s A Bull Market And How Did We End Up In The Longest One Ever?

A bull market is when stock prices continue increasing by 20 percent from a previous drop of 20 percent, or when the securities market keeps rising. Bull markets can also refer to other markets like housing, investment, or commodities.

Even though it is not easy to predict when a bull market will occur, they are too often the outcome of a robust gross domestic product (GDP), high investor confidence, declining unemployment rates, an improved demand for stocks, and corporate and investor profits.

The three principal stock indices – Nasdaq (NDAQ), Dow Jones Industrial Average (DOW), and S&P 500 – increase alongside each other during a bull market.

Experts believe the stock market is experiencing the longest bull market ever, hitting 3,453 days on August 22nd, 2018, from a low on March 9th, 2009.

The S&P 500 has had seven bull markets since 1970, five of them resulted in a market rise of over 100 percent. The most significant bull markets of the past fifty years are:

1970’s – In the seventies, assets grew quickly during several periods despite worries of financial turbulence. A protest started in 1974 came after a recession following the post-Second World War expansion. It lasted a little over six years. The S&P 500 grew by 122 percent during that time and the decade also experienced high inflation.

1980’s – The Reagan-era bull market was the briefest of the five and the S&P 500 increased more than 100 percent. On an annual basis, however, it was the most well-performing bull market, with the S&P growing 26 percent each year. It was powered by massive tax cuts and job creation, and record revenue creation. It lasted between August of 1982 and August of 1987.

1990’s – This bull market occurred during prosperous times, with healthy job growth in the United States and a tax relief act that made several stocks attractive. Tech companies flourished as the internet became accessible and ended in a robust bull market that went to great heights before failing in 2000. This bull market began in October of 1990 and lasted over nine years. The index rise was 417 percent overall.

Early 2000’s – After the 9/11 attacks and the dot-com bubble, this bull market went on from October of 2002 to October of 2007. Low-priced interest rates and lenient access to credit lines fueled this bull-run, which was mainly invested in the housing market. It stopped when estate prices started to drop due to the subprime mortgage disaster.

Today – Today’s bull market is the longest ever, starting March of 2009. It has been fueled by record-low interest rates and the easygoing fiscal policies embraced by central banks which has made it inexpensive to borrow capital. President Donald Trump’s tax cuts, which decreased taxes paid by American corporations, have extended the current bull-run.