Celebrating a Big Birthday
The bull market in U.S. equities could celebrate its 10th birthday on March 9th, 2019. Here we look back at how much ground this historic bull market has covered and look forward to potential continued expansion. A variety of economic indicators, including the Institute of Supply Management’s survey of new orders, point to potential economic growth that could support equities.​

Graphic showing multiple stats on U.S. Bull Market growth 

  • U.S. equities have returned over 400% or nearly 18% annually since the market bottom in March 2009 during the Global Financial Crisis. This incredible return has been fueled by 10% annual growth in earnings per share and expansion in the P/E multiple that resulted from growing confidence in fundamentals. Increasing dividends have also contributed to returns.

  • Driving the equity bull market has been an improving economy that saw real GDP grow nearly 25% as the Federal Reserve embarked on quantitative easing and increased the money supply by over 70%, helping to cut unemployment in half.

  • Going forward we see room for continued economic growth helping to support equity prices which we detailed in our quarterly Capital Markets Outlook: Sanguine About Slowing​. Economic expansion and corporate earnings growth are likely to moderate, but based on historical observations, equities have generated positive returns during such periods, with growth having outperformed value.​

The views expressed are the views of Fred Alger Management, Inc. as of March 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. ​

The Leading Economic Index is based on a variety of economic data and is part of the Conference Board’s analytic system that seeks to signal peaks and troughs in the business cycle.
The P/E multiple, or price-to-earnings multiple, is the current market price of a company divided by its expected earnings during the next 12 months. 

EPS, or earnings per share, is the total amount of a corporations’ profits divided by the total number of outstanding shares.

The S&P 500 Index is an index of large company stocks considered to be representative of the U.S. stock market.

Investors cannot invest directly in an index. Index performance does not reflect the deduction for fees, expenses, or taxes. 

Risk Disclosure: Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Many technology companies have limited operating histories and prices of these companies’ securities have historically been more volatile than other securities, especially over the short term. Technology companies may also face increased competition, government regulation, and risk of obsolescence due to progress in technological developments.

This material must be accompanied by t​he most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.​

​Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / www.alger.com

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