Fall 2018: The Makings of a Bull Market
It has been ten years since the stock market crash of 2008. Since then, the market has been on a tear. From hitting a low of 676.53 in March 2009, the S&P 500 Index has risen 331%, reaching 2,913.98 at the end of September 2018. While there have been occasional selloffs due to international events, unexpected election results, or fears of a trade war, the market has been resilient. All of this has investors asking, “Why has the market done so well?”
A lot has changed over the past decade. According to Bloomberg Businessweek, today the market is ruled by three giants, “Vanguard, State Street, and BlackRock, which manage 80 percent of the $2.8 trillion invested in U.S stock ETFs [exchange-traded funds].” A decade ago, the market was run by brokers who offered insight into the market and relayed their orders to trading floors. Today, computers have replaced many of the people on the trading floors, leaving them eerily quiet.