Have We Missed the Great Bull Market?

America's recovery from the global recession and subsequent bull run are based on solid economics

John Rekenthaler 21 June, 2018 | 7:07AM
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Dow Jones Hits 26,000

This may not be the best stock bull market in modern US investment history; the 1950s and 1990s are formidable rivals. By any standards, though, tripling one's money in real terms, in less than a decade, rates as a great success. That this gain occurred during a period of low volatility, with few large reversals and subdued inflation, heightens the achievement.

Yet almost nobody called it. Somebody, somewhere, advised near the market's bottom that investors load up on stocks. Not many, though. The best example that I can recall was GMO's Jeremy Grantham, who said in January 2009 that while stocks were not "dramatically cheap," they were worth buying, as he expected them to generate a 65% real return over the next seven years. Half correct; stocks rose 130% for that period.

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John Rekenthaler

John Rekenthaler  John Rekenthaler is vice president of research for Morningstar.