Bull market hits 100 months

Bull market hits 100 months

The economy has enjoyed more than 100 months of continual growth, surpassing the average length of a bull market, but advisers have sounded notes of caution to those looking to jump in for late gains.

The bull market, which began on 9th March 2009 in the UK and the US, celebrates its centenary this weekend – 100 months not out. 

April 2015 saw the last dip below 20 per cent - which marks the end of a bull run - although it has been a close shave, with falls in January 2016 dipping into dangerous bear territory. But the market bounced swiftly.

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US research by Newfound Research has identified 12 bull markets in the USA between 1903 and 2016, with the average term lasting 8.1 years. The current bull-run has surpassed this figure. 

Commenting on the research findings Rosie Bullard, partner at James Hambro & Partners, said: “The saying that bull markets climb a wall of worry is as true of this as any. We’ve had austerity, Brexit, Trump, elections in Europe and the debacle of the recent UK general election, but markets are still holding their nerve.

“People have been calling the end to this bull market since Brexit, but living in fear of an imminent bear market can be bad for your health and wealth. Anxious investors who pulled out of the FTSE 100 in the wake of the Brexit result have lost out on around 24% of returns.” 

But advisers sounded notes of caution to investors still looking for gains.

Martin Stanley, chartered financial planner at Rowley Turton, said: “There is no doubt that a bull market is good news for investors, but let’s not put aside the fact that markets can turn in a moment. We always advise caution and emphasis the importance of long term strategies rather than chasing the quick buck.”

Patrick Connolly, chartered financial planner at Chase de Vere, said: “It’s good news for the investors who are involved, but let’s not kid ourselves. If you are looking to invest right now you must refrain from thinking you’ll get these great returns. Think long term, it’s important to protect your capital first and foremost.” 

Stephen Womack, chartered financial planner at David Williams IFA, said: “We cannot expect the current run to continue, but there is no doubt that opportunities are there for investors. Regular reviews appear to be the order of the day, as no one wants to be left behind should the markets falter.”