In this article for Firstlinks, Roger discusses whether we will see a continuation of the bull market in 2020 with higher prices and expanding price/ earnings ratios.
Since the beginning of 2013, the real S&P500, which is adjusted for inflation, has risen by almost 200% and apart from two bouts of volatility in 2015/2016 and at the end of 2018, it’s been smooth north easterly sailing especially since 2016.
Global stocks began a significant march higher in February 2016. At the time, the global economy looked bleak but major economic ‘blocs’ were about to accelerate (relatively speaking of course) thanks to a dovish Federal Reserve and a massive Chinese domestic economic reflation attempt.
That we have been in a bull market for the last six years cannot be contested, and that’s a difficult thing for a value investor to want (or need) to admit. What’s challenging is not that we want lower prices to be able to buy more safely. What is challenging is holding on to what we have even when prices exceed the valuation estimates based on our most optimistic assumptions.
Read the full article here.