Trump Bump — Blog — Jill on Money

There have been four stock market corrections (a decline of 10 percent or more from the recent high) during the current eight-year long bull market. According to research dating back to 1900, corrections have occurred about once a year on average, and lasted on average about 115 days. Over the past thirty years or so, the S&P 500 has seen 21 corrections. Talk is increasing that correction number five of the second longest bull market on record, is just around the corner. If you are a long-term investor, you should be rooting for a correction. After all, wouldn’t you rather buy stocks at a 10 percent discount to where they are today?

Bull Market Celebrates Eight on a High

As the bull market in US stocks gets set to celebrate its eighth birthday this week, it is stunning to consider how far we have come. On March 9, 2009, here was the closing level of the three major indexes:

Dow: 6547 – lowest level since April 15, 1997
S&P 500: 676 – lowest level since Sept 12, 1996
NASDAQ: 1268 – lowest level since Oct 9, 2002

Will Trump Bump Hold?

20,000 may just be a number, but it's a big, round one. It took 42 days for the Dow Jones Industrial Average to move from 19,000 to 20,000, the second fastest thousand-point rise in the history of the index. (The quickest occurred in 1999, when it took just 24 trading days for the Dow to rise from 10,000 to 11,000.) The most recent leg up in the market has been referred to as “Trump Bump,” because the index has jumped by about 9 percent increase since Election Day.

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