Alger on the Money - Waiting Can Be Costly
11 August 2017
Identifying equity peaks and valleys has traditionally confounded scores of investors eager to position their portfolios based on their market outlooks. Many investors are now watching for a market decline to create a “buying opportunity” but history suggests that the current bull run may still have legs.
- Bull market longevity is increasing. The 1990s U.S. bull market lasted 12 years and was the most prolific bull market in modern American history.
- The last four years of the 1990s boom produced more than a 150% total return. Equities generated a high single-digit annualized return through the trough of the following correction.
- We are now more than eight years into a secular bullish trend that may have considerable room to continue given that it is four years younger than the 1990s bull market.
- Investors who are waiting for the “perfect” buying opportunity should consider the opportunity cost of doing so.