The Bull Market Has Bred Skepticism

The bull run that followed the 2008 financial crisis is widely considered the greatest of the past century, but according to an article in The New York Times, “despite the superlatives, this rally’s primary characteristic is how much skepticism it generated.”

The article points out that the rally of the past decade has not reached the “intensity of gains that defined the stock market bubbles of the 1920s and 1990s.” Instead, it explains, many investors have spent the past decade “deriding the rally and anticipating its demise.”

While bull markets are usually driven by economic growth and strengthening corporate profits, the last ten years has seen lackluster results on both fronts along with a global economy that “bounced from one crisis to the next.” The article lists other concerns including a sovereign debt crisis, worries about China’s economy, falling oil prices and looming trade troubles.

“This is not to say that investors weren’t excited about some stocks, ” the article says, noting the gains enjoyed by tech stocks and the significant effect they had on the S&P 500: