Someone Explain to Me How This Is A Sustainable Bull Market And Why

16 Feb

Via Barry Ritholtz.

The S&P500 has doubled in such a short time period only twice before.  How much longer do you really think this bull market is going to last?  How much higher can we go?  Sure, a very-low baseline (possibly an overreaction) can explain part of this enormous return in such short a time period, but what fundamentals are there to suggest these growth rates are going to continue?  Anyone? Bueller?

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One Response to “Someone Explain to Me How This Is A Sustainable Bull Market And Why”

  1. cautiousbull February 16, 2011 at 2:12 pm #

    While the chart clearly shows that returns have reached a two-year, what it also shows that in most cases when this happens is that the market pauses for breath with 0-5% returns for a certain period before accelerating again. I can identify 22 clear peaks on the chart, but only 13 of these are followed by a period of negative returns. Consequently, I don’t think this chart – on its own – proves anything.

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