How long do you think markets can go up ? Will they go up forever ?? Let’s peep into some data & understand the length & breadth of bull markets once.
If we go back to history, first major bull run started in 1991, markets gave an whooping return of 380% within 13 months at an index level, are you thinking that something is fishy ?? Yes, in late April 1992, Harshad Mehta scam had happened. That was the end of that fast & furious bull run.
After a decade long waiting, next bull run started in 2003 & lasted for 56 months with 620% return. It was epic. One of the long lasted bull runs in the history. 2008 financial crisis gave an end card to that run.
Next comes the current bull run after the corona crash, it’s almost 53 months with 220% return. Are we nearing to euphoria zone or we are still in the middle of super mega bull run ?? Only time will tell. Keep rotating your money in the undervalued sectors & cut your positions in overvalued stocks with weak fundamentals.
Will we witness any crash post this bull run ?? If so, what might be the reason for that crash ?
Don’t try to time the market but since we are not at the start of bull run, make sure you have some cash positions ready like a Buffet but keep investing in undervalued sectors & maintain diversification.
Key points:
- The current Bull market has returned a 220% gain in the past 53 months, but it’s not the longest, neither the largest
- The longest was 77 months, from Aug 2013 to Jan 2020
- The largest return was 622%, from May 2003 to Jan 2008.
