Five Mind-Blowing Statistics About the Bull Market

Depending on when you define its official beginning, the current bull market is roughly four years old. If this is your first bull market as a trader, maybe you were thinking that there would be more fanfare—more fireworks, and more participation.

It’s true that this is a market where investors are still skeptical but that doesn’t mean that the statistics are any less impressive.

Impressive Annual Gains

Since March of 2009, the S&P 500 has averaged a gain of 26.2 percent each year including dividends. This, according to Bloomberg, is identical to the final 50 months of the technology bull market of the 1990s.

The Multiple is Lower

Are you in the camp that stocks are expensive at these levels? Despite the S&P continuing to print higher all-time highs, the index is trading at 18.6 times annual profit. That’s significantly lower than the 25.7 multiple from the 1990s tech bubble.

Bears will argue that the low valuation proves that investors aren’t willing to pay up for what they’ve seen and this could speak to a lack of confidence in the rally.

Bulls say that since there is still a lack of exuberance--that bullish irrationality has to develop before the uptrend ends.

Impressive 2013 Gains

While it’s true that the market is currently showing some signs of fatigue, who can blame it if a pause in the uptrend takes place? In fact, technicians welcome a pullback in order to set up the next move to the upside. The S&P is currently up 15 percent in 2013—investors would be happy with 15 percent over an entire year—or two.

More Stocks Printing 52-Week Highs

Are the stocks within the index performing as well as the index as a whole? At the market peak in 2000, only 27 stocks printed new 52 week highs. Last week, 74 reached their peak. This proves that the breadth of the market is strong.

176 Days Without a Major Pullback

Business Insider reported that this market has now gone 176 days without a pullback of at least five percent. This ties the record from 2010.

Is this a reason to worry? Maybe, but bull markets have a way of defying what should be normal market action. Remember when everybody was waiting for the oversold rallies during the bear market?

For now, the market looks healthy but have a healthy respect for what could reverse course at any time.

Disclosure: At the time of this writing, Tim Parker is long numerous stocks and ETFs in the S&P 500.