Unless an unlikely accident, the US Stock Exchange should break a record on August 22: the longest bull market in its history, with 3,453 days without stock market crash.
Investors love numbers and symbols. They were satisfied on Tuesday, August 21st. The most representative index of the market, the S & P 500, which includes the 500 largest US companies listed on the New York Stock Exchange, reached the historical level of 2,873.23 points during the session (before ending at 2,862.96).
But this is another event that particularly affected the spirits: yesterday was the 3 452e day in a row "Without this index experiencing a decrease of at least 20%, characteristic of a bear market", says it Financial Times. This cycle of increase is therefore exactly as long as that of November 1990 to March 2000 – and ended with the bursting of the technological bubble.
"First crushed ten years ago by the worst financial crisis since the Great Depression, when stimulated by the Fed's highly accommodative monetary policy and, more recently, by the generous tax cuts of Donald Trump, the US equity market will fix this Wednesday [sauf revirement improbable] a new record for the longest bullish period uninterrupted "announcement The duty.
The party is not over yet
The length of the current cycle is explained "Because of the very low level at which he started", perspective Financial Times in another article. "After the near collapse of the global financial system in 2008, crushed by excessive debts and toxic mortgages"Markets had indeed been plunged into the abyss, the British daily reports. At its lowest on March 9, 2009, the S & P 500 was shriveled at 666 points.
According to specialists interviewed by the Wall Street Journal, the party is not over yet. "Any decision to take less risk because we have ever recorded the longest bullish period would not be an optimal investment strategy", says Mark Stoeckle, Managing Director of Adams Funds. And finally:
Markets can stay up much longer than many people imagine. & # 39;