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Wall Street Continues Making History by Breaking Ceilings

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The bull market in the S&P 500 dating back to March of 2009, less than one year after a financial crisis that almost took down the entire global economy, as of last week is now officially the longest stock run-up since the Great Depression, receiving fanfare from The White House all the way to Wall Street and in every corporate boardroom of publicly traded companies in America.

The record run continues, reaching almost 3,500 consecutive days in a bull run instead of a bear market, which recently had the S&P near 2,861, which when taken as a percent increase since the run started, is a 323 percent increase, The New York Post reports.

The historic run has hit some bumps in the road but somehow still manages to keep on steadily increasing, now almost halfway through the first term of another presidency. It never dropped 20 percent below its highs, not on a closing basis, which is why it is still on a bull run, The New York Post explains.

Some people pointed to the fact that the S&P 500 needs to close above its Jan. 26 closing high of 2,872.87 to really make its mark. It hit that high in the middle of the day before declining.

Earlier in the year, some analysts worried about a reversal of fortune as reported by the Jewish Voice. Wildly popular tech stocks are a two-edged sword, and some on Wall Street are offering dire predictions that the huge revenue being generated by firms like Amazon.com, Netflix, Facebook and others could cause an inevitable reversal.

“It’s a big momentum trade, investors don’t care if they’re paying 15 or 20 or even 50 times earnings,” Mike O’Rourke, Chief Market Strategist at JonesTrading, told Vosizneias.com this week. “The problem is, once those names start giving up those gains, then the market starts to have problems.”

“If you ask anyone right now, if it’s a business owner they’ll say they’re afraid of Amazon. If they’re an investor, they’ll tell you Amazon is going up forever,” Andrew Bodner, president of Double Diamond Investment Group in Parsippany, New Jersey, also told the news organization. “Overall, it creates more volatility for the market because everyone owns Amazon, and if Amazon goes down you’ll see that reflected.”

Case in point: Amazon is currently trading at 167 times expected earnings, up from around 100 a year ago, according to Thomson Reuters Datastream. The S&P 500, on the other hand, is currently trading at approximately 17 times expected earnings.

The Financial Times suggested in mid-January that the tax cuts pushed and ultimately passed by the Trump Administration “will pose a challenge to the tech sector’s market dominance this year.”

By: Jess Taylor

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