Last week, the week of August 20, marked the Longest Bull Market in history.  This means 3,453 days had elapsed since the start of the bull market in March 2009, which surpassed the previous record bull market that ended in March 2000.  Although this current bull market is a record in length, it is not a record for return percentage, as the 1990’s bull market (fueled by the dot-com boom) saw a 417% increase, vs. “only” 322% for this bull market.  Nevertheless, darn good returns.

What Does It Portend?

What does having just experienced the Longest Bull Market mean with regard to stock prices and investment returns going forward from here?  In a word, Nothing!  The fact that we have had a 10-year bull market doesn’t mean you shouldn’t go in and buy stocks tomorrow.  The two are not statistically correlated.  “Yes, but it can’t go on forever, can it?”  Probably not – forever is a long time – but it certainly can continue for a while longer.  The underpinnings for a strong stock market are still there: strong corporate earnings and relatively low interest and unemployment rates.

Sports Psychology

Any sports psychologist will tell you that the athlete’s sole focus during competition should be on the next thing – the next play, the next pitch, the next hole, the next serve.  Athletes are taught to have zero memory during competition, whether the athlete has been performing well or not.  Always look forward and never backward while competing.  The same should be true for investors.  Look forward, not backward.  Just because the market has been strong doesn’t mean that it won’t be strong in the future.  In fact, perhaps just the opposite.

IMO

When investing, keep your game face on.  Don’t fret over missed opportunities in the past.  Don’t think that you are better than you are because of a recent hot streak.  Instead, keep your goals in mind and go out and execute your plan.  Don’t be a Glass Half Empty person and think the markets are bound to correct because they have been going up for so long.  That type of mental predisposition is a recipe for failure.  As the British say, Keep Calm and Carry On.