How Long Can the Bull Run Continue?
Quite a while, if past recoveries are any indication.
Bob Johnson: This week we're representing a chart that shows the performance of bull and bear markets over time. It's a fascinating graph. It goes all the way back to the Great Depression, and it shows nine, including this one, major recoveries in the market. We get a lot of questions about how long can this bull market in the stock market continue. This graph would tend to stay quite a while.
The graph is neat because it shows the recoveries in two dimensions. First of all, it shows you how long the recovery lasts, and that's by the width of the graph bars that you see there--the wider the bar, the longer the recovery. We can see that some of the recoveries have lasted as long as 168 months. We're only at about the 61 right now. We have got a long ways in terms of time that we can go compared with some of the recoveries. So, we are certainly not necessarily at the end.