While I don't think the bull can go on for years, I do think it is a favorable environment for slow and steady investment.
The term “Goldilocks” economy is something that I have talked about in a number of posts in the past. With steady, consistent growth, the economy has a much better basis to support the continued bull.
Other than Wall Street traders, who profit with higher volatility, most of the economy thrives with a more placid environment. Low and less volatile rates enable better financing decisions. Low inflation is also a positive part of a steady economy. Better financial decisions can be more comfortably made.
With the severe burns that consumers took with the last downturn, many consumers are much more careful to keep their spending at reasonable levels. The pain felt was much like the great depression since home ownership is something that many consumers are personally involved in.
My parents who were raised in the great depression were cautious throughout their lives. In my opinion, many of the people who were burned in 2009 will be much the same.
