Bull Market is Getting Long in the Tooth
This week The Short Side of Long blog illustrates how the current bull market, which happens to be aging quite nicely, compares to the bull markets over the past 80 years.
The chart below shows that our current bull market, at 252 weeks of age, is one of the longest of the 16 identified. Also, today’s bull market is nearly 100 weeks longer than the average. If it continues for 11 more weeks it will be the second longest in the post-depression era.
This data should serve as a warning to those contemplating an increase in their equity allocation, since attitudes towards risk become skewed and imbalances tend to develop (see recent margin debt numbers) whenever a bull market continues unabated; especially when accompanied by low volatility.
Source: The Short Side of Long