I think in terms of cycles and the normal cycle is roughly 4 years long. Since 1945 there has been the 4-year US presidential cycle. The way that works out on averages after a recession period is you tend to get 3 really good years in the stock market, and then the 4th year is a correction. Well, after the low in 2009 you would normally, in the seasonally weak period of last year in October, have had a correction. Of course we didn’t get it because QE was designed to stop that from happening.
When you look back over the last 100 years, some of these recoveries in stocks have lasted longer, but the current one is already 60 months long. So it’s already much longer than the normal cycle. It is definitely a statistical outlier. It isn’t quite the longest one yet.
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