A lot of crazy things happened in this decade.
Of course the pandemic:
This caused oil prices to go negative (which makes sense given the circumstances, but I still can’t quite believe this happened):
Trillions of dollars in government spending combined with supply chain shock led to 9% inflation; This is the highest level in the last forty years:
This caused the Fed to raise interest rates from 0% to 5% in a short time:
The stock market experienced many fluctuations during this period:
There were the Covid crash, the 2022 inflation bear, the Independence Day crash and minor corrections from this year’s war.
Additionally, the rise in interest rates and inflation gave investors the worst bear bond market in history:
And yet… the stock market boomed in the Roaring 20s:
The S&P 500 is up 15% each year.
In fact, there is an equal period in the 2020s better It has (so far) returned more than the 2010s, which had an annual return of 13.4%.
If you start from the moment things turned around in March 2009 after the Great Financial Crisis, you find that the stock market is up about 17% per year.1
That’s a 17% annualized return over 17 years.
This bull market is a stone’s throw away from arguably the greatest American bull market of all time:
Some may dispute the fact that I started the bull market from the bottom of the bear market. OK, whatever.
The problem is that we are fast approaching nearly two decades of extraordinary returns in U.S. stocks.
Selling your stocks during a bear market can be devastating to your performance, but missing out on a bull market of this magnitude can further damage your portfolio.
If you’ve avoided all the persistent bears saying we’re nearing the end, you’ve done well. There was every reason to sell along the way.
At some point the fun will end. It always happens.
will be down years, long bear marketsfinancial crisis and perhaps even recession. These are still possible, right?
My advice?
Enjoy the bull market while it lasts. This always turns into something.
Further Reading:
New All Time Highs
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