by David Chapman
Is “irrational exuberance” back? This is how some people are now referring to the bull market that is approaching its eleventh anniversary. It is a bull market like no other. Naturally, it depends on how one terms a bull market. A bear market is generally defined as a decline of 20% or more. So, if the market doesn’t fall 20% or more, the bull continues. On that basis, the current bull is now 4,000 days old or just shy of 11 years. Yes, there were three corrections along the way. The steepest decline saw the Dow Jones Industrials (DJI) lose 19.4% from October to December 2018. The other two corrections occurred in April to October 2011 (down 16.8%) and in May 2015 to February 2016 (down 14.5%). Other stock market indices may have fallen more than the DJI did, but our reference point is the DJI.