Six year bull market - Astonishing
six year bull market and counting
Can the six year bull market Continue?
This six year bull market has been the worlds worst nightmare for bear investors. Since 2009 the market basically keep treadling up higher, and every time we see a dip, the bears keep calling it a CRASH, only to see that weeks later they are again proven wrong, and we see new buyers come in, which takes us up to highs yet again.
It’s easy – maybe too easy – to mount a damning case against today’s six year bull market. We can see the point, but when you see a chart like below, go from the BOTTOM LEFT TO TOP RIGHT, that is not a bearish situation, and its probably safe to think this six year bull market is not finished yet.
Not at all!
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above : six year bull market - weekly chart |
Valuations stand at lofty heights and, judging by the lifespan of past rallies, this six year bull market looks positively geriatric.
But despite all the nay saying, it may not be time to bolt out of stocks just yet. Many analysts – and not just the usual perma-bulls – say that today’s tired old bull market appears quite capable of trudging even higher.
One important reason for optimism is that stock prices are still cheap in comparison with bond prices, according to John Higgins of Capital Economics. He argues that stocks are likely to continue to be a relative bargain even if the U.S. Federal Reserve begins to raise interest rates later this year.
But we have had six year bull market before. In fact they have lasted for much longer, as you may not know, stock market in the end are not designed to go down. Over the long run, stock markets will have plops, drops, crashes, and miniature dips. However over the longer term, they are designed to go in an UPWARD trajectory.
We can say that the market will crash in this October, but a six year bull market I think will not just die in the ass, in one day or one week. Normally if a six year bull market is about to see trouble ahead you get lots of warning before hand.
So far with the trouble in GREECE and CHINA as well this six year bull market looked to be in serious doubt and trouble. But as the days linger on, you can see that what we are seeing right now even with the country of GREECE and its country in serious risk of full financial collapse is that all it could mean is just a six year bull market dip, before higher prices are seen at the end of the year.
Say it out aloud slowly, '
six year bull market ' ... it sounds funny, but when you say it out aloud two or three times to yourself, subliminally it could be telling you more than you realize. :-)
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