Connect with us

Markets

Visualizing the Longest Bull Markets of the Modern Era

Published

on

Visualizing the Longest Bull Markets of the Modern Era

Visualizing the Longest Bull Markets of the Modern Era

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

During the longest bull market in modern history, the S&P 500 surged a whopping 418% over the 9.5 years between November 1990 and March 2000.

This was during the famous economic expansion that took place during the Clinton era, in which job growth was robust, oil prices fell, stocks soared, and making money was as easy as throwing it in the stock market.

In mere months, this famed bull market may lose its title as the “longest” in the modern era.

That’s because, according to data and analysis from LDL Research, the current bull market will take over the claim to fame in late August 2018.

Ranking the Bulls

In today’s chart, we show every bull market since WWII, including the top six which are covered in more detail:

RankBull MarketDatesMonthsS&P 500 ReturnAnnualized Return
1Great Expansion'90-'00114418%19.0%
2Post-Crisis Bull Run'09-'18*112*302%16.7%
3Post-War Boom'49-'5686267%20.0%
4That '70s Growth'74-'8074126%14.1%
5Reagan Era'82-'8760229%26.7%
6The Hot Aughts'02-'0760101%15.0%

*Still in progress.

By looking at duration, total rate of return, and annualized rate of return, it really gives a sense of how these bull markets compare.

The current run, which will soon become the longest, didn’t have the same level of intensity as other high-ranking bull markets. Critics would say that it was artificially propped up by ultra-low rates, QE, and other government actions that will make the market ultimately less robust heading forward.

Regardless, the current run ranks in fourth place among the markets above in terms of annualized return.

What Ended Each Bull?

The market psychology behind bull and bear markets can be fascinating.

Below we look at the events credited with “ending” each bull market – though of course, it is actually the actions of investors (buying or selling) that ultimately dictates market direction.

1. The Great Expansion
The bull run lasted 9.5 years, ultimately capitulating when the Dotcom Bubble burst. From the span of June 1999 and May 2000, the Fed raised interest rates six times to try and get a “soft landing”. Market uncertainty was worsened by the 9/11 attacks that occurred the year after.

2. The Post-Crisis Bull Run
Still ongoing…

3. The Post-War Boom
This boom occurred after WWII, and it ended in 1956. Some of the sources we looked at credited the launch of Sputnik, Eisenhower’s heart attack, and the Hungarian Revolution as possible sources of market fear.

4. That ’70s Growth
The Iranian Revolution, the 1979 Energy Crisis, and the return of double-digit inflation were the factors blamed for the end of this bull.

5. Reagan Era
This bull market had the highest annualized return at 26.7%, but the party came to an end on Black Monday in 1987 – one of the most infamous market crashes ever. Some of the causes cited for the crash: program trading, overvaluation, illiquidity and market psychology.

6. The Hot Aughts
Stocks did decently well during the era of cheap credit and rising housing prices. However, the Financial Crisis put an end to this growth, and would cut the DJIA from 14,000 points to below 6,600 points.

Click for Comments

Markets

Will Tesla Lose Its Spot in the Magnificent Seven?

We visualize the recent performance of the Magnificent Seven stocks, uncovering a clear divergence between the group’s top and bottom names.

Published

on

Will Tesla Lose Its Spot in the Magnificent Seven?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In this graphic, we visualize the year-to-date (YTD) performance of the “Magnificent Seven”, a leading group of U.S. tech stocks that gained prominence in 2023 as the replacement of FAANG stocks.

All figures are as of March 12, 2024, and are listed in the table below.

RankCompanyYTD Change (%)
1Nvidia90.8
2Meta44.3
3Amazon16.9
4Microsoft12
5Google0.2
6Apple-6.7
7Tesla-28.5

From these numbers, we can see a clear divergence in performance across the group.

Nvidia and Meta Lead

Nvidia is the main hero of this show, setting new all-time highs seemingly every week. The chipmaker is currently the world’s third most valuable company, with a valuation of around $2.2 trillion. This puts it very close to Apple, which is currently valued at $2.7 trillion.

The second best performer of the Magnificent Seven has been Meta, which recently re-entered the trillion dollar club after falling out of favor in 2022. The company saw a massive one-day gain of $197 billion on Feb 2, 2024.

Apple and Tesla in the Red

Tesla has lost over a quarter of its value YTD as EV hype continues to fizzle out. Other pure play EV stocks like Rivian and Lucid are also down significantly in 2024.

Meanwhile, Apple shares have struggled due to weakening demand for its products in China, as well as the company’s lack of progress in the artificial intelligence (AI) space.

Investors may have also been disappointed to hear that Apple’s electric car project, which started a decade ago, has been scrapped.

Continue Reading
NOVAGOLD. Pure gold. Precious opportunity.

Subscribe

Popular