The Most Unloved Bull Market Finally Comes to an End
Though it was the longest in history, it never quite felt like a boom for most people.
The 11-year bull market in U.S. equities is over, at least by one measure. At the close of trading on Wednesday, the Dow Jones Industrial Average had recorded a 20% drop from its highest point. The S&P 500 closed 19% below its high, just outside of bear territory. But the events of recent days had already provided the sense of an ending—the world was already anxious about much more than stock prices.
“The most unloved bull market” is the nickname this rally earned, and for good reason. While it was the longest in history, for much of its life it never quite felt like a boom for most people. It was born in the wake of the 2008 financial crisis and a massive, controversial effort by the U.S. government to rescue the nation’s banks. It was fueled for years by companies buying back their own shares, historically low interest rates, and the Federal Reserve purchasing massive amounts of bonds in what investors interpreted as an effort to keep the party going as long as possible.