EC Top 10 Longest Bull Markets In Modern History

Bull and bear markets are integral parts of the economic cycle. There is a saying that bull stock markets don’t die of old age. They come to an end because of speculations, wars, political uncertainty, and credit crunches. The current bull run has been dubbed as the longest bull market ever. Here we take a look at the top 10 longest bull markets in modern American history.

So, what is a bull market? It's when a stock index rises at least 20% from its most recent lows. And the bear market occurs when stocks drop 20% or more. However, some people don't agree with the definition. That's why they believe that the current bull run is not the longest on record. The bull market ends and bear market begins when an index declines 20%. But what if the index drops 19.5%? There is some grey area here.

These are the ten longest bull stock markets since the year 1900. It could be mere co-incidence, but five of the ten longest bull markets started in the month of October.


10- Second World War, 49 months (Apr 1942 - May 1946)

America was not an active participant in the Second World War until Japan bombed Pearl Harbor. The US entered the WWII in December 1941. Young men went to Europe and Asia to fight. More and more women entered the labor force as factories ramped up production of defense equipment and other supplies. As the war raged, the bull market began in April 1942 and ended in May 1946. The S&P 500 index gained 158% in those 49 months.


9- The beginning of Cold War, 50 months (Oct 1957 - Dec 1961)

The Federal Reserve had raised interest rates in 1956 to curb inflation. The Suez crisis and the Hungarian Revolution were weighing down on stocks. The Soviet Union launched its first man-made satellite in 1957. The bull market sprung up in October 1957. The S&P 500 index gained 86% between October 1957 and December 1961. But the stocks declined 28% in the first half of 1962.


8- Post-Great Depression bull market, 57 months (June 1932 - Mar 1937)

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