n March 2009, the US economy was in the midst of the Great Recession.The government had just reported that more than 650,000 jobs were lost in the prior month. The Dow and S&P 500 were each down more than 50% from their October 2007 peaks.
And there seemed to be no end in sight to the doom and gloom on Wall Street and Main Street.Flash forward 10 years, and it’s been mostly blue skies for investors since then. Thanks to steady economic growth and a surge in corporate profits, the Dow and S&P 500 are up more than 300% since they hit bottom on March 6, 2009.
But now that this bull market is approaching its 10-year anniversary, some are wondering how much longer the rally can last. Stocks have soared so far in 2019 following the tumultuous fourth quarter of last year.
That’s led to new questions about whether stocks are too pricey.The S&P 500 had been trading at 18 times 2019 earnings estimates before stocks cratered last fall. That multiple fell as low as 14 following the huge sell-off. But it’s now at 16 after the index started 2019 with a 12% pop.