On September 9th, the bears appeared to be running the table.
Investors were concerned that a month of central bank announcements would lead to a market pullback. Concerns about the end of easy money, sky-high equity valuations and lack of economic growth in Europe seemed to confirm trader’s worst suspicions, as the S&P 500 fell over 2.5% that day. But in the weeks that followed, the markets were able to shake off the gloom. So what gives?
Apparently, those arguments just weren’t enough to end the 7 ½ – year bull market. News of the improving domestic economy was certainly a plus, along with less hawkish news from the ECB and the Fed. And with interest rates so low, the current high valuation of stocks seem to not be enough of a catalyst to push the markets lower.