Tenth Anniversary of Bull Market Commences, But No One Has Reason to Celebrate
The financial crisis ended 10 years ago, when the financial system was nearly in ruins. The recession was responsible for taking up 700,000 jobs monthly, and the trillions of dollars brought in through the stock market was gone, but it was a great time to invest in stocks. Ten years later, the bull market that came in at that time is still one of the greatest rallies that the stock market has ever seen. The S&P 500 saw a 305% surge, ranking it the second-best run ever.
Since the bull run began, over $30 trillion in wealth has been acquired. Though it was adjusted for inflation, there is no other bull run in recorded history to surpass it, even at the end of the dot-com bubble. However, considering the attitudes of US citizens with the earlier bull runs, the latest rally is hardly getting a second look. Stock trading is steady with no real “frenzy,” according to the New York Times, and there is no one quitting their day job to focus on day trading.
The Times believes that the weight on top of this celebration comes from the financial and psychological damage that the public sustained. Less and less people want to be associated with stock investments and are being cautious in how they handle their money. Professor Charles Geisst of Manhattan College, who has taken time to study financial markets, commented that he thinks that this bull run is “probably the most disliked or most suspected rally” that the market’s been through.
Luckily, as most of the market agrees, whether it be cryptocurrency markets or stock markets, every crash has a bottom, which happened in March 2009 when the Federal Reserve chose to spend $1 trillion on new government and mortgage bonds. The goal was that interest rates would be lowered, introducing “quantitive easing” and the bull market. The rise of the S&P 500 was the highest it had been in six years, showing 8.5% growth that month.
At that point, it should have been the sign that stocks are ripe for purchase, but the lack of funds as people came fresh out of the recession was a major roadblock. Anyone that was in a good position to buy stocks were already find without stocks. The stock market recovery did little for the lower and middle classes, and only made the rich richer.
The whole market seems to be primarily playing it safe. Furthermore, the Americans that saw how this boom played out before seem to be the most cautious that they’ve been since the dot-com era. With many people who are stockowners coming from the baby boomer generation, the main priority is retirement, and no one wants to risk losing that. However, younger Americans are “scarred from that experience,” according to economist Ulrike Malmendier of the University of California, Berkeley.