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Political and economic developments helped equities in the US reach a value of $10 trillion in 1997, ten times the value of equities in 1982. The stock market has continually hit new highs in 1997 because of a good economy. The popularity of mutual funds contributes to the high valuation as well.

Traditional market analysts have suggested stock assets are superior to all other forms of investment, with around 9% in annual returns. However, it must be noted that such results assume investors to place their money in the market for extended time periods. Thus, a balanced portfolio must also have holdings in bonds and cash to ensure financial safety. The 1929 stock market crash and the ensuing Great Depression has made investors more cautious in evaluating and reacting to bull and bear periods.

Ned Davis, owner of Ned Davis Research sees increasing risks as the bullish market continues to rise. Although not predicting a crash, he compares the behavior of the market since January 1995, with its behavior in 1929 just before the crash. Davis' advice is to be half invested at this time.

The recent Barron's Smart Money survey of institutional investors revealed that 75 per cent believe that 1992 will bring an improved stock market. Most are convinced that the economic recovery has begun and that market indexes will rise 15 per cent next year. A bull market is forecast.

The value of the stock market has declined 18% since its peak in Jul 1998, which puts the market on the verge of entering a bear market. Some analysts believe the bear market will not emerge and that the bull market will recover, although not to the degree at which it has performed.

The stock market broke another record on Jul 11, 1997. Its 24% gain since Apr 11, 1997, marks its strongest 3-month advance since Nov 1982. Because stocks are trading at an average of six times book value, such a rally was unexpected.

Continued economic growth caused the Federal Reserve Board to raise interest rates in Mar 1997 and analysts who believe the stock market will enter a bear phase may have been proven wrong. The correction experienced by the bull market was based on the valuation of stocks, not fundamentals.

Strong corporate earnings reports, along with moderate job creation and inflation data, helped the Dow Jones Industrial Average and the S&P 500 to soar higher. The Nasdaq index fell 22 points, as dominant index firms such as 3Com, Cisco Systems, Intel and Microsoft all retreated.

The LatinFinance 100 (LF 100) achieved record highs in Sep 7, 1993 and continued its bull run despite volatility in the market. New highs were reached following positive developments in Mexico, Argentina and Brazil which boosted their respective bourses. However, the LF 100 suffered a setback by the middle of the month. as profit-taking and corrections spurred a downward trend. It was only during the third week that the LF 100 recovered and posted a gain, with the help of heavy bargain hunting and solid fundamentals., Despite volatility, the LF100 reaches a new high The August LF100 bull run continued in early September. And with several markets reaching record highs, the LF100 treaded into virgin territory. [...]

Investment analyst Bob Farrell discussed the surging bull market in weak economic times. Farrell predicts the market will maintain its volatility, with cyclical bear markets, even if interest rates rise and end market speculation.

A whiff of irrational exuberance THE way the world's stockmarkets slid so steeply last September now seems a distant memory. Later that same month, some Wall Street analysts claim, a [...]

Some fluke factors such as a very warm winter have helped the US economy seem stronger than it may really be. Likewise, the apparent bull market conceals overvalued shares such as eBay and Conseco.

The stock market gave a lackluster performance for the week ending Oct 22, 1999, due to reports of lower than expected earnings for IBM. In general however, more companies reported good earnings. Some analysts expect the market and the economy to falter soon despite the appearance of good times. Industry reforms are examined.

The stock market mania has reached monumental proportions and the loopiness seems to be affecting other areas of life. Examples of the craziness include the focus on the sex lives and drug use of presidential candidates, the auction of a human kidney on eBay and the mass resignation of major league umpires.

NEW YORK For the first time in years, Wall Street is becoming gloomy about American equities. Is the bull run over? A LION was led on to the floor of [...]

The stock market's bullish performance faltered briefly in Apr 1998 when the effects of large mergers were considered, the announcement that Paula Jones would appeal the dismissal of her sexual harassment suit against Pres Clinton and the arrest of a stock promoter.