Wednesday, August 22, 2018

This Is the Longest Bull Market Since the Great Pyramid Boom of 2580 B.C.

The uncomfortable reality is all Bull Markets, no matter how lengthy or robust, all expire.
As you have undoubtedly heard, the current Bull Market in U.S. stocks (S&P 500) is the longest in recent history--though some historians claim that Rome's SPQR Index rose steadily though most of Emperor Augustus' 40-year reign from 27 B.C. to 14 A.D., easily topping the current rally's 10-year run.
It's also possible that the longest Bull Market occurred circa 2580 B.C. in Egypt, as a result of quarry stocks soaring for decades during the construction of the Great Pyramid at Giza. The unprecedented outpouring of wealth for labor and materials boosted the stocks of a variety of sectors, from quarries to shipping to breweries slaking the thirst of the thousands of laborers toiling on the project for the better part of a generation.
Why do epic Bull markets that grind higher year after year finally expire?Analysts have various economic and financial reasons they tout: Treasury bond yields invert, debt begins to drag on growth, authorities raise interest rates too steeply, and so on.
But the uncomfortable reality is all Bull Markets, no matter how lengthy or robust, all expire, and continuing the policies that fed the Bull from now until Doomsday won't change that reality.
Perhaps it comes down to the human psychology of hubris and complacency.Players get overly confident even as "animal spirits" start waning.
You know about the New Corporate Headquarters Curse, right? As soon as a high-flying corporation constructs a monument to its success, i.e. a New Corporate HQ, the company begins an epic descent shortly after the completion of the hubris-soaked monument. (Hey, didn't Apple just build its Spaceship HQ...?)
Then there's the Skyscraper Index, a.k.a. tallest building in the world Curse-- a host of "the tallest building in the world" projects are either under construction or on the drawing boards, an intuitively appealing signal that the stock market is topping out.
But while we wait for hubris to work its Bull-killing magic, "Buy the new highs in the SPQR Index or feel my wrath!"



My new book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.
Read the first section for free in PDF format.


If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.

Thank you, Cecilia L. ($10/month), for your outrageously generous pledge to this site -- I am greatly honored by your support and readership.
 
Thank you, Kenneth T. ($10/month), for your outrageously generous pledge to this site -- I am greatly honored by your support and readership.

Terms of Service

All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.


Our Privacy Policy:


Correspondents' email is strictly confidential. This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative). If you have other privacy concerns relating to advertisements, please contact advertisers directly. Websites and blog links on the site's blog roll are posted at my discretion.


PRIVACY NOTICE FOR EEA INDIVIDUALS


This section covers disclosures on the General Data Protection Regulation (GDPR) for users residing within EEA only. GDPR replaces the existing Directive 95/46/ec, and aims at harmonizing data protection laws in the EU that are fit for purpose in the digital age. The primary objective of the GDPR is to give citizens back control of their personal data. Please follow the link below to access InvestingChannel’s General Data Protection Notice. https://stg.media.investingchannel.com/gdpr-notice/


Notice of Compliance with The California Consumer Protection Act


This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising. If you do not want any personal information that may be collected by third-party advertising to be sold, please follow the instructions on this page: Do Not Sell My Personal Information


Regarding Cookies:


This site does not collect digital data from visitors or distribute cookies. Advertisements served by third-party advertising networks such as Investing Channel may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative) If you have other privacy concerns relating to advertisements, please contact advertisers directly.


Our Commission Policy:

As an Amazon Associate I earn from qualifying purchases. I also earn a commission on purchases of precious metals via BullionVault. I receive no fees or compensation for any other non-advertising links or content posted on my site.

  © Blogger templates Newspaper III by Ourblogtemplates.com 2008

Back to TOP