Thursday, April 28, 2016

MarketWatch: The U.S. Is in the Midst of a Historic Bull Market

MarketWatch correctly notes:
A bull market that has been derided as fake, doomed and history’s most-hated just earned a new title: the second-longest ever.
Dodging and weaving through three 10 percent drops in the last 19 months while avoiding the 20 percent decline that denotes a bear market, the advance that began seven weeks after Barack Obama’s first inauguration in January 2009 has now lasted 2,607 days. That matches a rally from 1949 to 1956 which straddled the presidencies of Harry Truman and Dwight D. Eisenhower. Only the dot-com bubble of the 1990s lasted longer at 3,452 days.

The idea held by many, including Krugman-Keynesians and Austrian-lites, that the Fed can no longer creates the boom side of the boom-bust Fed created business cycle, is simply absurd.

And as far as the Austrian-lites go, reflects a complete failure to understand what the business cycle is in the first place.



  1. Without derision and disbelief, a bull market can not climb the wall of worry. They are necessary ingredients.

  2. We are aware of the boom in risk assets. The major US indexes are near all time highest, yet GDP is near stall speed. Obama struggles to explain the weak economy as underlying conditions deteriorate. First president not to see a single year of 3% growth. Please explain the dichotomy between risk asset inflation and the sick real economy.