FINANCIAL analysts say the stock market is now experiencing its worst bull market in history, but they are quick to say it will soon turn around and bring the world a whole lot closer to a normalcy.
But with a lot of questions swirling about the financial sector and its impact on the economy, the outlook for the future of the economy is not as rosy as it could be.
“There are still things to worry about.
The economy is growing but we still have a lot to worry the economy,” said Michael Kors, chief investment officer at Kors Investment Management in New York.”
What we do know is the risk is very high.
We do have concerns about what this will mean for the housing market, the healthcare industry, the banking sector.
I’m not going to say this is the end of the world.
There are still risks,” he said.
“But it’s not a catastrophe, and that’s the message from the markets.”
For investors, the bull market is a good thing, but it comes at a price.
While stocks are up more than 60% this year, many economists are warning that the next downturn will be much worse than the last one.
The markets are trading up more, but the economy has barely budged.
The Federal Reserve, in a statement this week, warned that it could take years for the economy to recover and warned that an economic contraction of at least 4.6% could be expected in the first half of 2020.
In a separate statement, the U.S. Treasury Department said it was reviewing its strategy for dealing with a “recessionary shift in macroeconomic policy.”
“We have to be careful about how much we can tolerate in our current macroeconomic environment, and the extent to which we can support a robust recovery from this downturn,” the statement said.
The Fed has said it will take a longer view on raising interest rates than in the past, and it has hinted that a rate hike could come sooner than previously thought.
The economy is still growing, but there is little doubt that the recession will last much longer than it has in the previous bull market.
“The economy has not grown the way we would like it to grow and so I don’t think we’re in a recession right now,” said Robert Shiller, chief economist at the Boston Consulting Group.
“I think it is likely to be a long, long time,” he told CNBC on Wednesday.
In some ways, it’s a bit like the previous bear market.
There were many reasons why the markets were up during the bull years.
A combination of cheap credit and strong demand from people around the world helped drive a boom in stocks.
The housing bubble burst and the stock bubble popped.
The Federal Reserve raised interest rates to ease the pain of the crisis, and there was much speculation that the financial system was on a path to recovery.
However, the economic outlook is not looking so rosy.
“In a normal market, we would have seen the stock markets go up.
That was always the case,” said Kors.
“We were right.
Now they are not.
That’s where we see the bull in our midst.”
Some experts believe that a return to normalcy is in the cards, but for now, investors need to keep their fingers crossed for an even better economy in the future.