Since march 2009 we have been witnessing the run of a long term secular bull market. Of course it is only visible on a graph in 2018. Granted valuations are not as attractive as they used to be, however there are still very good long term growth opportunities.
What is supporting the Macro trend?
- The US labor market is very healthy and jobs are still growing.
- GDP numbers are strong & the federal reserve is tightening interest rate policy.
What is supporting the selective investor?
- Corporations specifically in Tech, healthcare, some financials will post strong earnings due to the 1 trillion dollar combined buybacks & favorable corporate fiscal policy.
- Strong labor market will continue to support demand for those businesses.
- Bonds face value is still way to expensive compared with historical data, which supports higher stock valuation.
I would like to point your attention on the graph below:
If you look carefully we have been since 2013 above the 2000 & 2007 levels.
This means that from 2000 to 2013 we have witnessed a long term secular bear Market
This secular bull market might not be around 10 years old but 5.5 years old…. to be continued.