As traders cheer the longest bull market in history, they ought to be wondering “what’s next?”
The bulls are cheering loudly today as the S&P Hits Record, Equals Longest Bull-Run
The benchmark S&P 500 hit an all-time intraday high on Tuesday, the same day it equaled its longest-ever bull-market run, as U.S. stocks rose on encouraging earnings reports and hopes that the United States and China could resolve their tariff dispute.
The index’s bull-market run is now 3,452 days old and on Wednesday will be the longest such streak in history, at least for some market watchers.
The Dow Jones Industrial Average was up 128.98 points, or 0.5 percent, to 25,887.67 and the Nasdaq Composite added 75.26 points, or 0.96 percent, to 7,896.27.
What’s Coming?
Record Breaking Bear Coming
Following the record breaking bull market we can expect a record breaking bear market.
GMO predicts returns of -2.3% to -4.9% per year for seven years.
John Hussman is even more bearish as noted most recently in Extrapolating Growth.
Hussman Comments
Hussman, the bears in general, and the gold bugs specifically have long been discredited in this bull market.
Mathematically, that’s the way it “must” be at major market peaks. The masses have to ride every wave in both directions. There is no escape for the bulls.
Longest Bullshit Market. No doubt. This isn’t capitalism. This is management of the ignorant masses’ perspective. EVERY government statistic is a freakin’ lie. They lie because they MUST.
A whole lotta “toxic asshats” gonna go up in smoke.
I’m going with Martin Armstrong on this. The Market is coiling, and barring some black swan, will move to new all time highs. There really is a lot of capital moving back into the US. Of course at some point in the future there will be a bear market. Now is when we prepare for that.
Hussman needs the markets to take a 60% haircut in order for his 3/5/10 year return numbers to match a simple buy and hold the s&p 500 strategy. That is assuming he can, unlike the majority of investors, also profit during the next bear market.