An Aging Bull Market: Time to Be Cautious?

    Facebook Twitter LinkedIn Email

By Rich Weiss - October 2019

There’s a saying on Wall Street that bull markets don’t die simply of old age. I would add that they don’t live forever, and you will see signs when they are coming to the end of their life spans.

Four signs have caught my attention. First and foremost, global growth is slowing down. Second, earnings growth is grinding to a halt. The third sign was the antibiotic shot the Federal Reserve gave the market in the form of interest rate cuts. And the bond market delivered the fourth sign when the yield curve inverted—that is, the interest rate you get on longer-term bonds became lower than the interest rates you get on short-term bonds.

While I’m not raising the recession flag just yet, I do believe caution is warranted. After all, even an aging bull can gore you.

Watch my latest video for more insight on the signs and how we’re positioning our portfolios.


    Facebook Twitter LinkedIn Email
Rich Weiss
Rich Weiss
CIO Multi-Asset Strategies

Insights from our CIOs

Get additional insights in our latest Investment Outlook.

Discover More
  • Related Articles
  • More From Author

Panic And Perspective

Markets may have panicked today, but we think it’s best if investors respond with poise and patience instead.

Fed Commits to Help for the Long Haul

Here’s the role the Federal Reserve has played in the 2020 economy, and what policymakers are expecting for the rest of the year.

A Bright Outlook for Global Growth Investing?

Global equities may have a sunny outlook or 2020, according to Portfolio Manager Brent Puff. Here are three factors shaping his view.

    Panic And Perspective

    Markets may have panicked today, but we think it’s best if investors respond with poise and patience instead.

    What's Behind the Latest Market Recovery?

    After a rough second half of 2018, we've seen a notable turnaround in 2019. How much longer can it last?

    Multi-Asset Strategies

    Providing a concise, easy-to-scan overview of current opportunities and risks in today's global markets.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      American Century Investments is not responsible for and does not endorse any comments, content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks from Facebook, Twitter or any third-party website. Facebook, Twitter and LinkedIn are registered trademarks of their respective owners.