The US stock market, as measured by the S&P 500 Index, just reached a historic milestone.
On August 22, 2018, the index went 3,453 days without a correction of 20% or more.1 By that measure, it’s now generally regarded as the longest US equity bull market on record, surpassing the previous record bull run that lasted from October 1990 to March 2000.2 That record ended when the Dot-Com bubble burst, after valuations for tech stocks disconnected from earnings and reality.
Most observers generally cite March 9, 2009, as the start of the bull market. Since then, the S&P 500 Index has risen more than 300%, as the chart below shows.
As we mentioned in a previous article, the current bull market has shrugged off some notable corrections, defined as a decline of 10% or more.3 It’s weathered the beginning and end of US quantitative easing and crises in other parts of the world.
For example, the S&P 500 Index fell 19% during the European debt crisis from April to June 2011.4 However, the market proved to be resilient and finished 2011 up 2% for the year.5