What goes up eventually comes down, even in stock markets. Still, it can take a long time, much to the chagrin of those looking for a buying opportunity.
Many have warned of a reckoning, where the stock market gives up the gains of more than 50 percent posted by major U.S. averages since March. Yet the market has gone from strength to strength as the economy emerges from the worst recession since the 1930s.
Those waiting for a much talked-of pullback of 10 percent or more may be cooling their heels for a long time, if previous market experiences are any guide. The rallies that commenced after the two most recent U.S. recessions ran longer than pessimists expected.
"You might not get that decline if that's what you're waiting for," said Cleveland Rueckert, market strategist at Birinyi Associates in Stamford, Connecticut. "A lot of people have been and probably will be surprised how far the market can go."
Six months before the United States pulled out of recession in March 1991 the stock market began to rally. Seven years later the S&P 500 had more than tripled in value without ever pulling back by 10 percent.
This was not the only time markets have run ahead without a significant correction. Coming out of a bear market after the dot-com bubble, the S&P 500 surged 95 percent from 2003 to 2007, again, without a 10 percent correction.
Many have warned of a reckoning, where the stock market gives up the gains of more than 50 percent posted by major U.S. averages since March. Yet the market has gone from strength to strength as the economy emerges from the worst recession since the 1930s.
Those waiting for a much talked-of pullback of 10 percent or more may be cooling their heels for a long time, if previous market experiences are any guide. The rallies that commenced after the two most recent U.S. recessions ran longer than pessimists expected.
"You might not get that decline if that's what you're waiting for," said Cleveland Rueckert, market strategist at Birinyi Associates in Stamford, Connecticut. "A lot of people have been and probably will be surprised how far the market can go."
Six months before the United States pulled out of recession in March 1991 the stock market began to rally. Seven years later the S&P 500 had more than tripled in value without ever pulling back by 10 percent.
This was not the only time markets have run ahead without a significant correction. Coming out of a bear market after the dot-com bubble, the S&P 500 surged 95 percent from 2003 to 2007, again, without a 10 percent correction.
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