Will the bull market in shares live to see its 9th birthday?

10.03.2017 / 17:42

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Investors are singing "Happy birthday" to the bull market and wonder whether it can continue its historic rise.

On Thursday, March 9 was the eighth anniversary of the low closing of S & P500 at the beginning of the financial crisis - time which resulted in a decrease of 60% from the beginning to the end the crisis.

If measured from that date - the bull market is in its longest streak since World War II.

Various measures of bullish sentiment—a typically contrarian indicator—are running strong, retail investors are finally showing the market some love, and stocks are undeniably expensive.

The signals that the bull market is over should materialize.

This bull market is not only the second longest, but also the second most expensive. On 12 monthly basis the price-earnings ratio of S & P500 is 25%. Before that is only the 30% of the technology bubble in 2000yr.

Investors, however, are encouraged by the projected 11% growth in 2017 operating earnings per share and think growth could be even stronger if the Trump's administration successfully do the promised tax cuts and increase the spending on infrastructure.

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Will the bull market in shares live to see its 9th birthday?

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