Interesting seeing bullish headlines around the world besides the European gloom. USA experts are commenting about bull markets on the run. In Asia, experts are suggesting that the next bull market is about to start.
It is certainly true that any one who bought the S&P index on the 6 Mar 2009, when the market bottom (of course only now we can see that it is a bottom) would have make a decent profit as the index has more than double.
Nevertheless, anyone who bought Bank of America (one company that hasn’t outperform) at $5.93 on the 6 of Mar 2009 would have “just” make a return of about 25%. Which is a good return on investment.
In Asia and Europe the scenario isn’t any different. Most indexes are in positive territory since the 2009 bottom but still a long way from the tops before the financial crisis.
Surprisingly major blue chips stock are near their bottom. Leighton, Rio, BHP, the Banks, Motorola, and in general, services and utilities companies are off the recent heights or are considerably closer to the 2009 bottom.
In general, market trends have definitely room to move up. If retails investor return to the market it could be the extra push up and could also signal that the bull market has been running for a while and confidence is high. In the other hand, retail investor might not be financially prepare yet, nor might want to re-enter the market so soon.
Interest rates and real estate which are two key elements of booming times, are still depressed. And the easy money (borrowing and lending) that dominated the last bust are a long way from happening. Any positive news will be enough reason for the bulls to push markets substantially higher.