Stocks near sky-high $30 trillion mark


We’re in the midst of one of history’s greatest runs of stock market wealth creation.

Just consider this: The US stock market has been on a rip-roaring ride and the S&P 500 Index finished 2017 up more than 20%.

If the rally that started in March of 2009 survives through August of this new year, it will be the longest on record.

 

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$30 Trillion

Or take a look at the Russell 3,000, which represents about 98.5% of total US stock market cap.

It’s nearing the $30 trillion mark in market value, according to the Bespoke Investment Group.

 

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Source: Bespoke Investment Group


 

Trump Era

Some $6.26 trillion has been added during the first year of the Trump presidency.

The new tax law that will lower corporate rates is a big reason.

Also at play are a relatively strong US economy and historically low interest rates, though the Federal Reserve is poised for three rate hikes in 2018, according to analysts.

During the time of President Obama, who inherited the financial crisis, the market gained $12.3 trillion in value.

 

Takeaway

From the dark days of the 2008-2009 financial crisis, an enormous amount of wealth has been created.

Individual investors are bullish, according to a recent post by Bloomberg.

“About 60 percent of individual investors think the stock market will go higher in the next six months, the highest percent since 2010, according to a survey by the American Association of Individual Investors. For every bearish investor, there are nearly four bulls.”

This is bull market won’t last forever of course. But when it’s over, in my opinion, it will stand large in the history books.

Photo Credit: WILL POWER via Flickr Creative Commons

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Xavier Brenner
Xavier Brenner
Xavier Brenner has covered global market, business and economic trends for Interactive Brokers Asset Management since 2013. An experienced financial journalist, Brenner offers analysis and insights on the stories that matter to the discerning investor.