The Bull Market Turns 10: The Longest Bull Market in History

The Bull Market Turns 10

The bull market reached an impressive milestone just a few weeks ago on March 9. That day marked exactly 10 years since the transition from a bear market toward the end of the recession to the bull market that we enjoy today. On March 9, 2009, the SPX (S&P 500) closed the day at a price of $676.53. Exactly one decade later, the SPX closing price was $2743.07. An increase of slightly more than 300 percent has certainly captured the attention of American investors.

Biggest Market Movement from 2009 to 2019

The large SPX jump and 10-year bull market string has not come without a handful of scares. For example, investors laid low in 2011 due to anxiety over the accelerated speed of the European debt crisis. Some other events that could have created a bear market, but did not include:

  • Steep market crash in the fourth quarter of 2018 due to fears of rising interest rates in the United States, an economic downturn across the world, and the possibility of a trade war between the United States and China.
  • The 2010 flash crash that resulted in a stock market drop of one trillion dollars that lasted for exactly 36 minutes.
  • The 2016 Brexit referendum in the United Kingdom that had only a mild and short-lived impact on markets in the United States.
  • Rise of interest rates by the Federal Reserve in late 2017 and early 2018.
  • Although these events caused temporary panic among investors, their impact was not enough to have a lasting effect on a strong market. The question is how long this can and will continue.

Factors That May Affect the Bull Market Going Forward

No financial advisor can predict the future. The only thing they can say is that the economy in the United States is doing quite well at present. Low interest rates, tax cuts, and modest inflation are just some of the factors that play into the health of the economy and the confidence of investors. Corporate earnings also continue to be high.

Although industry analysts predict economic growth to slow in 2019, they are not yet predicting an end to the bull market’s 10-year streak. The looming trade war with China continues to weigh on the minds of investors this year, just as it did last year.

Now is a Good Time to Audit Your Portfolio

Although a bull market is always exciting, we at Aura Wealth Advisors always recommend taking a proactive approach to managing your portfolio. That means reviewing it regularly in any type of market to determine if you could make changes to place yourself in a better financial position. Whether you are a current client or just getting started in the world of investing, we encourage you to learn more about our wealth management services and then schedule an appointment with an advisor.