According to an article recently published by the Office of Financial Research, the "current bull market is longer and larger than historical bull markets" at 72 months (211% return) with the average being 55 months (165% return). The article, entitled Quicksilver Markets, by Ted Berg, goes on to point out that "from the market bottom in March 2009 through the end of 2014, U.S. equity prices tripled." In this post we'll look at some of the factors driving this growth and what it means for the average investor.
Historically Low Rates
Much of the growth in asset prices is due to historically low interest rates, or cheap money. The intrinsic value of a stock can be calculated as the present value of its future cash flows and a lower discount rate naturally leads to a higher present value. It's true, the current low interest rate environment has artificially increased…
