Blodget: 18-Year Bull Market
Wednesday, November 11, 2009 10:37 AM
The United States may well be in the midst of a bull market that could last 18 years, just like the one that began in 1983, as the Reagan recovery began, writes investment guru Henry Blodget.
"The longer a bull market lasts, the more bullish people get. And now that we're seven months and 60 percent off the March low, people are getting really bullish," writes Blodget, CEO and editor-in-chief of The Business Insider.
"People are starting to draw comparisons to 1983, the second-year of an amazing 18-year bull market that took the Dow up tenfold. Could they possibly be right?
"Yes, anything's possible."
There are some cautionary facts that must be mentioned, however. Stocks are now starting to get expensive.
Consumers are continuing to carry a lot of debt, even though they have been paying it down substantially. Interest rates are low, and they were high, back in the 1980s.
"Governments around the world are screaming from the rooftops that they're going to keep giving money away for free until the hereafter. As long as they're doing that, the value of some assets will likely continue to increase," writes Blodget.
"And right now, one of those assets is stocks."
Others investment experts agree.
Bloomberg News is reporting that billionaire Kenneth Fisher believes "we still have a lot more bull market to go because we had such a huge bear market. Optimism in the stock market will continue its surge."
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