10 Top-Ranked ETFs Leading The 10-Year Bull Run

The U.S. bull market is now a decade old, rising from the depth of the financial crisis and the Great Recession despite a plethora of challenges. Worries about debt crisis, government shutdown, the Middle East conflict, geopolitical tension, Greece turmoil, China’s soft landing issues, Japan’s recession, a global slowdown, Brexit, the oil price carnage, and trade war between the United States and China have derailed the bulls.

The S&P 500 index has quadrupled, rallying more than 300%, from the bear-market bottom of 676.53 on Mar 9, 2009 — representing the longest bull market in history. However, it is not the strongest as stock prices in the 1990s bull market increased 417% at the peak, more than 100 percentage points above the current bull market.

The rally came with six corrections (a decline of 10% or more), the last witnessed at the beginning of December 2018. Cheap money flows and lower interest rates have been the biggest drivers of the longest bull market. Additionally, the United States emerged as a healthier economy dodging the financial crisis and the Great Recession, with GDP growth rising from a contraction of 5.7% seen in March 2009 to 2.9% in 2018, representing the second-strongest pace of the 10-year-old expansion. The unemployment rate has fallen to 3.8% currently from 10% in October 2009.

Further, Americans have an optimistic view of the economy with confidence hitting the highest level in more than 18 years though temporary headwinds like trade war and partial government shutdown have hit sentiments over the past few months.

Record stock buybacks and all-time high dividends also led to a spike in the stock market. Tax reforms passed by President Donald Trump and stronger corporate earnings have boosted the longevity of the bulls lately. Notably, the positives have cumulatively added around $21 trillion to the S&P 500 value. The trend is likely to continue for another year with major bourses showing strength on hopes of a trade deal, a dovish Fed and an improving Chinese economic health.

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