Today Marks the Longest Bull Run in Stock Market History
|March 6, 2009, marked the low point for the S&P 500, reaching a macabre intraday low of 666.
Since that date, the S&P 500 has increased, fairly steadily, to its current intraday level of 2,865.
And with that protracted upward climb, solidified itself in the record books as the longest bull market in U.S. history.
A large majority of U.S. stocks have been included in this bull run, too.
The Dow Jones Industrial Average has risen 19,228 points or 291% over that period of time.
And the Nasdaq increased 6,559 points for a percentage gain of 505%.
Yes, there’ve been some small bumps along the way, as can be seen in the charts above. But, for the most part, investors have enjoyed an extended period of growth sprouting from an extremely low point in U.S. economic history.
Fun Facts
I saw a few of these “if you had” examples in various reports today, and thought I’d pass them along.
If you had invested $1,000 at the market bottom, here’s your return for two of the markets’ biggest gainers.
- Amazon – $1,000 invested on March 6, 2009 would equal $30,530 today
- Netflix – $1,000 invested on March 6, 2009 would equal $62,022 today
Great for those who jumped into those, or any, stocks soon after the markets hit rock bottom.
Truth be told, though, many were too shell-shocked by the damage done to their portfolios, not to mention the fear associated with keeping homes and jobs, to be adding stocks right then.
So, not many have seen astronomical gains in the thousands of percent ranges.
But, most who had/have money in 401(k)s or IRAs have seen some nice gains since 2009.
Now What?
What happens now is the big question.
The United States has never seen stocks increase for this long, ever. And when a milestone like that is hit, you usually want to keep a look out for the other shoe to drop.
Although, at this point in time, all signs seem to show no end in sight for stock market gains.
Corporate earnings are strong, even when the recent corporate tax rate cuts are excluded from the numbers.
Meaning, a large percentage of the U.S. population is feeling good and spending money. And with unemployment numbers at record lows, that’s not surprising.
I could get into a few of the dark clouds lurking in the distance, but I won’t.
Today’s a day for celebration.
U.S stock markets have hit a milestone that bodes well for everyone. Retirement accounts are growing, pension funds are making headway to – possibly – meeting their obligations, and overall economic growth in America is strong.
Tonight let’s raise a glass in commemoration.
And, tomorrow, raise a finger to test the winds for those dark clouds are inching closer.
charts courtesy of morningstar.com