We are currently in year 6 of the current secular bull market. Let that fact sink in.
The secular bull market that started in 1982 and ended in 2000 went on for 18 years, with the S&P 500 going up 10x in that time period.
As it stands now, from the beginning of the current secular bull market, defined as the breakout of the S&P 500 to new all-time highs in 2013, the S&P is up less than 100%.
Very simply put, bears are, at a minimum 12 years early with the various pieces of analysis they are continuously throwing at the market wall, hoping something will stick.
On top of that, central bankers worldwide are more dependent on equity markets appreciating in value in order to sustain economic growth than ever. While its very easy to understand the bearish argument of all the economic moral hazard this entails, it doesn't mean that the global economic system will collapse on itself tomorrow. Quite the contrary, it means that global central bankers are more incentivized than ever to keep this train going at warp speeds into the edge of infinity and beyond.
These guys are getting together begging the inflation gods for asset appreciation while juicing their respective economies with every bit of monetary and now fiscal stimulus measures they can think of.
You want the big story of the next economic decade? It's fiscal stimulus measures gone crazy as world governments borrow money cheaply to build everything they have ever dreamed of, creating an endless stream of job growth, economic prosperity and glittering cities the world has never seen. All funded by artificial stimulus measures that keep the cost of money next to the zero. If the long end of rates starts getting out of control they cap rates. They are going to tinker, modify and create economic Frankenstein monkeys that are going to have traditional students of economics doing Exorcist like tongue dances and neck twists.
Central bank hedonism won't be stopped. Invest accordingly.
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