0314bull.jpg

The U.S. bull market staggers to its seventh birthday

The S&P 500 has managed to rally since the post-financial crisis lows of March 2009, even as a European debt crisis, a fiscal deadlock in Washington and a crash in oil prices have all threatened to end the bull market over the years.

The bull market celebrates seven years this month, but economists say that increased volatility and also the decreasing effectiveness of economic “bazookas” to rally risk assets suggest the bull is running out of steam.

Nonetheless, the S&P 500 has managed to rally since the post-financial crisis lows of March 2009, even while a European debt crisis, a fiscal deadlock in Washington along with a crash in oil prices have threatened to finish the bull market over the years.

Global stocks fell right into a bear market last month, however the S&P 500 narrowly avoided doing exactly the same and has since rallied from the February lows. That means the bull market is now 84 months long, the third-longest ever and closing in on becoming the second longest, an archive currently held through the 86 months of gains seen between June 1949 to August 1956.

Much of the current rally continues to be helped along by accommodative monetary policy from the U.S. Fed and easing policies generally all over the world. But the punch that such policies once had appears to be waning.

“The near-perverse market response to recent bazooka-like easing steps, beginning with the financial institution of Japan and its negative rates and then the ECB now, shows that we’ve almost reached the end of the line for central banks supporting asset prices and/or undercutting currencies,” said Douglas Porter, chief economist at BMO Capital Markets.

Still, that doesn’t suggest the end is right nearby.

Related

About admin

x

Check Also

twitter_inc-earnings.jpg

Twitter Inc’s user growth stalls as sales forecast falls short of estimates

Twitter Inc. said it didn’t add new users in the fourth quarter and forecast first-quarter ...

0211manulife.jpg

Manulife Financial Corp profit slides 62% as energy investments take a hit: ‘A disappointing year’

TORONTO – Energy exposure hit the conclusion of Manulife Financial Corp. in the fourth quarter, ...

gold_coins.jpg

Pension funds hope for better deal in de-risking marketplace

A pension risk exchange – an online marketplace that aims to create those defined benefit ...