Financial Planning Fridays #113: How Long Can Stocks Go Up?
Hi Friends,
How long can stocks continue to go up?
Having just marked the 2-year anniversary of the current bull market in stocks, I wanted to share with you what previous bull markets have looked like after they reached the same milestone.
Twelve bull markets have lasted longer than two years out of the 27 that occurred since 1928. They had a total average return of 195% and a total median return of 125%.
You can see in this chart that we would need an additional gain of 62% to reach the median and 132% to reach the average.
They have also lasted an average of 1,450 trading days with the shortest ending on day 516 and the longest lasting more than 3,000 days!
We have about another three years before this bull market reaches the median and average length. If we broke the record for the longest bull market shown on the right, we would have another 10 years to go, ending sometime in 2034 when our 8-year-old daughter Emma graduates from high school.
So, what does all this mean?
We still have no way of knowing how long our current bull market is going to continue, no one does. However, once again, history tells us that we may have a lot more gains ahead of us. When we look at this data it makes us feel optimistic and even further committed to the disciplined and defined investment strategy that we use with our clients.
No matter what happens next, we feel well prepared at Presilium and are ready to take advantage of whatever the market and world brings us for our clients.
Thank you and we look forward to talking with you next Friday.
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