NEW YORK — The bull market for U.S. stocks turns 10 years old this weekend, which puts it way past senior citizen status for a market run. It’s got the scars to prove it.
“It’s been one bull run, but there have been stages to it,” said Michael Cuggino, portfolio manager and president of Permanent Portfolio Family of Funds. “Because of that, it’s been harder to kill off, and it’s had a better run than you’d expect.” But by the spring of 2010, markets had a new concern: Could Greece pay its bills? Greece’s economy was small, but the worry was that its debt problems could spill over into the global economy. The 2008 financial meltdown had clearly and painfully demonstrated how interwoven markets had become.
The bull market nearly expired during that week: At its lowest point, the S&P 500 had lost nearly 18 per cent from a prior peak set in April of that year. By October 2011, it was down 19.4 per cent.During this bull market, China overtook Japan to become the world’s second-largest economy. More importantly, China provided much of the momentum for a global economy that was desperate for growth following the Great Recession.
But in February, a report showed that workers’ wages rose more than economists expected. That sounds like a good thing, but investors grew nervous that higher labour costs would erode corporate profits. It also increased the chance of the Federal Reserve getting more aggressive about raising interest rates to forestall a surge in inflation.
Sverige Senaste nytt, Sverige Rubriker
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