The 20-Year Bull Market

The first decade of the 21st century was very unusual for the stock market. We had two once-in-a-generation crashes within nine years of each other. That’s not supposed to happen, yet it did.

I’ve often seen this offered as proof as to why the stock market is a bad deal. However, if we adjust out starting points just a bit, we can see much better results.

We’re coming up on the 20th anniversary of an important low point for the stock market. On December 8, 1994, the market began its huge run that characterized the latter 1990s. Technically, December 8th wasn’t the low for the year, but after that is when things really heated up. It was also a few weeks after the GOP took control of Congress for the first time in decades.

From December 8, 1994 to yesterday, the Wilshire 5000 Total Return Index is up 588.93%. That’s more than 10% annualized. Meanwhile, the CPI is up by 59.16% over the last 20 years, or 2.35%.

Posted by on November 11th, 2014 at 3:41 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.