It is only fitting that promptly following the third worst bear market of all time resulting from the bursting of the biggest, until that point, credit bubble ...
[4]
... that as a result of over $10 trillion in global fungible central bank balance sheet expansion, and a new and improve and bigger than ever credit bubble, one which includes the sovereigns too, the S&P is now 162% higher from its March 9 2009 lows of 676.53, making this the fourth biggest bull market in US history, and 120% greater than the median, 73.53%, bull market since 1929.
[5]
The next logical question: what would make this relentless Fed balance sheet tracking "bull market" become the 3rd biggest bull market in history, or 2nd biggest... or biggest of all time.
Here are the S&P500 breakevens for those particular thresholds:
- 2,225 on the S&P would mean a 228.9% rise from the lows, becoming the 3rd biggest bull market ever.
- 2,500 on the S&P would mean a 267.1% rise from the lows, becoming the 2nd biggest bull market ever.
And, the winner, and perhaps the Fed's real end target for the S&P500, which would make the current artificial stock ramp on tens, and soon hundreds, of billions in monthly Fed flows, is:
- 4,616 on the S&P500 for a 582.3% return from the March 2009 lows without a 20% bear market drawdown inbetween.
At that point the Fed will be able to sleep soundly, knowing its biggest credit bubble ever has also resulted in the biggest equity bull market of all time.
So just under 3,000 more points to go.