Source: Raymond James Research




This morning, I made note of the difference between secular bull and bear markets. I described secular bear markets as being longer-term, characterized by strong rallies, vicious sell-offs and earnings contractions.

Secular bull markets include an investor willingness to pay more and more for the same dollar of earnings even as stock prices rise. (I’ll revisit this issue next week.) The simplest way to think of secular markets is as longer eras driven by overriding dynamics that define the period ether positively or negatively.

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Category: Cycles, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Structural Bull Market ?”

  1. Whammer says:

    But what if the last 5-6 years is analogous to that patch in the 1920s? That’s what makes horse races….

  2. Singmaster says:

    But what drives the rally? The market does not live in a vacuum. What policies, what tax rates, what innovations, what social circumstances were surrounding the rallies? And then, what changed?
    Or is the suggestion that the market naturally goes up for about x years and then moves sideways for y years and that’s just the way it is? Do you believe that? My mind cannot.
    Could be a good exercise for Invictus.