What ends a bull market?
There’s an old Wall Street adage that “bull markets don’t die of old age; they die of fright.” Although that’s not universally true, there are a few things that have historically spelled the end of a bull cycle:
- Higher interest rates, perhaps triggered by a spike in inflation
- An economic slowdown, which can trigger layoffs, business closures, and decreased consumer spending
- A global shock or unexpected event, such as a war, pandemic, or the popping of an economic bubble
Not coincidentally, these are among the fundamental causes of a bear market.