If history is to repeat itself, and all those who study history know as certain as the morning sun, it does, then given the reaction to market events that occurred on July 8th, 2015, the bull market that began on March 9th of 2009 has more points to run.
On Wednesday, July 8th of this year, you may recall that Greece was on the edge and potentially about to “Grexit”, China’s stock market bubble was imploding and the New York Stock Market, where millions of shares of stock trade every minute and in the middle of this global implosion, suddenly shut down for several hours.
When three un-related global events occur such as 1 – the inevitable bankruptcy of a relatively small economy, 2 – the decline of an inflated market like China’s and 3 – a computer glitch could initiate worldwide financial fear, we know that history has re-affirmed our truth. Specifically that public psychology (fueled by the media) continues to be driven to panic and that fear wins over greed when a 4% peak to trough pullback in the stock market can inspire mindless panic.
Now, you may have missed all this if you were 1 – on vacation or 2 – not watching or reading the news – both preferable alternatives.
Our position is we are still early in the stages of a bull market and it likely has years and many more points to run. It will not end until the cashier at our local grocery store recommends a stock we absolutely must own and our neighbours recommend we mortgage the house to invest.