Longest Bull Market Ever
Last Wednesday, August 22nd marked a major milestone - the bull market (born on March 9th, 2009) became the longest in history, overtaking the record run from the 1990's.
What does this mean for investors? According to the Research Team at LPL Financial, we expect more ups and downs over the remainder of 2018, as volatility is normal late in economic and market cycles, but that doesn't mean the bull market is nearly over. In fact, when we look at the combination of stimulative fiscal policy, increasing government spending, robust corporate profits, strong consumer and business confidence, and low inflation, we think this economic expansion and bull market could potentially have years left to go.
The chart below shows the longest bull markets since WWII.


And Finally...
It took nearly seven months, but the S&P 500 Index finally closed at a new all-time high this past week. Many clues along the way suggested new highs could eventually come, like strong overall market breadth and excellent earnings growth. Still, the big question now is, what happens next?

LPL's Senior Market Strategist, Ryan Detrick, explains, "Investors have been patiently waiting for new highs in the S&P 500, even while small caps and technology have been making new highs for months now. Here's the good news: When the S&P 500 has gone at least six months without a new high, the index has been higher a year after the next new high in 17 out of the past 18 instances, going back to 1950." 

The chart below shows how long waits between new highs tend to foreshadow strong outperformance in the subsequent year.
(Click to make larger)
Could this week's new high be another sign that the bull market is alive and well? It very well could be.
Continue your reading by visiting the Learning Center section of our website, which features LPL's Weekly Economic and Market Commentaries.

This week's Market Commentary takes a look at second quarter earnings, while the Economic Commentary breaks down the Fed minutes from the most recent meeting and last week's Fed Economic Policy Symposium in Jackson Hole.
You can stay up to date with both commentaries by visiting our website, or sign up to receive them weekly via email by clicking here.

Robert Schermerhorn, CFP ®
Ryan Duff, CFP ®
Jamie Usas, CFP ® ,
Operations Manager
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