‘Bull Market’ Label Needs to Be Kept in Perspective
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Abby Joseph Cohen’s contention (“Charging Ahead,” Jan. 2) that the “bull market in U.S. stocks is entering its seventh year” is highly questionable. Yes, the S&P; returns (including dividends) for 1996 and 1995 were spectacular. But how quickly financial commentators have dropped from their analysis the disastrously low returns of 1994 (1.32%), the average returns of 1993 (10.05%) and the paltry returns of 1992 (7.62%). We have to go back to 1991 to find evidence of a bull market providing the great returns (30.48%) comparable to the last two years.
The facts of this were exhibited in your accompanying “Anatomy of a Bull Market,” which covered 1985-96, but the years of disappointing stock returns received no analysis in Cohen’s article.
I think we need to remember the lows of the stock market over the last few years as well as the highs in order to keep things in perspective.
MARY FIELDS
Lake San Marcos
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