The Best Ten Years Ever?

Last week I wrote about this great market in ‘The Trend Is Your Friend‘.

It turns out that the last 10 years are ‘The Best Ten Years Ever‘, according to research from Michael Batnick.

There is a lot of cheerleading going on at The White House right now about the economy and the stock market. I am long and superstitious enough to cringe at all the ‘tempting of fate’ each time I see a tweet about stocks.

I like Michael’s take on the last 10 years and what lies ahead:

It’s hard to appreciate the good times when you’re in the middle of them, which is why it’s helpful to turn to the data. Narratives hide the present, numbers reveal them.

Looking at the numbers, one can easily make the argument that we just lived through the best ten-year period ever for U.S. stocks. Which means what, exactly?

Well, it’s hard to say. Can this bull market continue? Yes, of course. It’s already gone on longer than many people thought it would, myself included. But is it likely to be as strong as it was over the last ten years? No, almost certainly not.

In a system as unpredictable as the stock market it’s difficult to make predictions, but if there are any iron laws we can learn from studying the past, it’s that the good times don’t last forever. I’m not saying we’re about to enter a lost decade, but I’m very confident that the next ten years won’t be as smooth as the last one.