Despite all the fears over possible future tax rises and growing unemployment, the markets are still robust and keep creeping up.
Two articles, one that I caught on Citywire and another in Investing Strategy both put out the case for further gains.
Just recently the FTSE 100 hit a 21 month high of 5640. The FTSE has grown by 60%, the S&P by 68% and the Russell 2,000 Â by 94% in the year and some shares are up over 1,100%. Don’t we all wish we’d listened to the bottom callers last year?
It also seems that recent bull markets have typically lasted around 50 months, so based on history there is a lot of steam left in this one. Maybe as much as another two years. But prior to World War Two, three of the five bull markets lasted under 24 months, but even this leaves a little time for more gains.
Those that stayed in or invested over the period have made any easy money that was there to be made, but they had to have the vitamins to do it.
The FTSE closed up at about 5630 yesterday, so with a rise of only a little under 7% we could be seeing the magic 6,000. But not, I would think, before the general election.
Then comes the warning, past performance is no guarantee of future performance. And many would argue that we are now in very uncharted waters. But remember, when the bears were growling 2 years ago they were not heeded by most. The bulls are now snorting, are we listening today?