The run of gains on Wall Street turns eight years old on Thursday, and some analysts expect it to continue. Fred Katayama reports.
The bull market on Wall Street turned eight years old on Thursday. Some analysts say it's expected to rage on. They point to solid earnings, lower taxes, and a business-friendly administration in Washington. But others warn a correction as deep as ten percent is in the works. A&G Capital's chief investment officer Hillary Kramer. (SOUNDBITE) HILARY KRAMER, CHIEF INVESTMENT OFFICER, A&G CAPITAL, (ENGLISH) SAYING: "It's been an extraordinary run that we've had. But it's really been built on action by the Federal Reserve. It's really been about printing money. We have had fundamental improvements in bottom line earnings, but actual revenue growth needs to improve more on the part of our companies." The S&P 500 has rallied 250 percent since hitting a closing low of 676 on March 9, 2009. The gains since rank this bull market as the second longest ever. (SOUNDBITE) HILARY KRAMER, CHIEF INVESTMENT OFFICER, A&G CAPITAL, (ENGLISH) SAYING: "The significance of this eight year bull run is more in that how it changed the actual workings and structure of how investments are made and the movement of wealth. The consumer never gained, employment truly never came back to its original state. There are still tens of millions of people looking for work, those who did find work aren't completely satisfied with what they've found. And many billionaires were created, and the middle class became the lower middle class." A Reuters poll in December shows analysts expect the S&P 500 to finish 2017 at 2,350. They're counting on President Donald Trump to push his plans to stimulate the economy with infrastructure spending, lower taxes, and financial deregulation.