9/3/2023 0 Comments Stock market graph![]() Read more: The global financial crisis in six charts It has been extended by President Trump’s tax cuts, which reduced taxes paid by US corporations. It began in March 2009 and has been fuelled by record-low interest rates and the easy monetary policies adopted by central banks which has made it cheap to borrow money. The current bull market is the longest on record. It ended when property prices began to collapse due to the subprime mortgage crisis.ĥ. It was fuelled by low interest rates and easy access to credit which was largely invested in the housing market. Pre-global financial crisis bull marketīeginning in the aftermath of the dotcom bubble and September 11 attacks, this bull market lasted between October 2002 and October 2007. This bull-run began on 11 October 1990 and lasted just under nine-and-a-half years. Technology companies boomed as the internet took off and culminated in a powerful bull market that went to extremes before collapsing in early 2000. This bull market coincided with good economic times robust job growth in the US and a tax relief act made certain stocks attractive. It was powered by huge tax cuts, massive job creation and record wealth creation and lasted between August 1982 and August 1987. However, on an annual basis it was the best performing bull market, with the S&P rising 26% annually. This was the joint shortest of the five bull-runs where the S&P500 rose in excess of 100%. The decade also saw high inflation, which would have eroded asset price gains. It came after a recession that followed the post-Second World War expansion and lasted just over six years during which time the S&P 500 rose by 122%. Since 1970, the S&P 500 has seen seven bull markets, five of which resulted in a market rise of more than 100%.ĭespite perceptions of economic turmoil in the 1970s, assets rose rapidly in certain periods. Putting the caveats aside, it is possible to identify the major bull markets of the past five decades. The five biggest bull markets over the last 50 years An intra-day fall in 2011, which took the market down more than 20% from its high, would have broken the current bull market, making it only seven years long. You should also note that the definitions are based on closing prices. The 20% fall in 1990 was actually a 19.92% but rounding up has led to a consensus that a new bull market began then. ![]() ![]() The bull market has lasted for 3,453 days. The furthest the index has fallen since then is 10% to 2,581 on 8 February 2018. The current bull market for the S&P 500 peaked on at 2,872.87, although it registered a higher intra-day level yesterday at 2,873.23. Data for S&P 500 correct as at 20 August 2018. Source: Schroders and Thomson Reuters Datastream. Please remember that past performance is not a guide to future performance and may not be repeated. The longest S&P 500 bull markets: 1990s vs the 2010sįor information purposes only. From a closing low of 295.46 on 11 October 1990, the S&P 500 rose 417% to peak at 1,527.46 on 24 March 2000, or 546% on a total return basis. It works out to an average rise of 16% a year.īut while the current bull market is the longest in history, bigger gains were made during the 1990s. More recently, the prospect of trade wars, a surging US dollar, rising interest rates and the withdrawal of stimulus by central banks has failed so far to derail the bull.įrom its closing low of 676.53 on 9 March 2009 the S&P 500 has risen to 2,862.96 points. Gains have been made in spite of a difficult economic and political backdrop over the past decade. On a total return basis, which includes dividends paid by companies, the index has returned 415%. Since March 2009, the S&P 500, the primary US stock market index, has risen by 323%, a gain few could have envisaged after the index plunged 57% from its peak in October 2007 during the global financial crisis. Plenty of traders working in the markets today will only ever have known rising share prices. As of today, it beats the great equities performance of the 1990s.Ī bull market is broadly defined as one that rises over time without falling more than 20% from its peak during the period. It began on 9 March 2009 and, so far, has lasted nine years, five months and 13 days. The US stock market is on its longest bull-run in history.
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