With the recent drop in the stock market, many investors and analysts are calling this the end of the bull market. They are seeing a complete shift in the market and in the economy as a whole. But you don’t need to worry. The end of the bull market is overblown.

Why do I say this? The simple answer is the reasons we are seeing the decline or volatility in the market are not due to factors that signal the end of a trading market, regardless if that is a bull market or a bear market.

In this post, I’ll walk you through what is happening and why it is happening. Then I’ll show you why this isn’t the end of the bull market run we are in.

3 Reasons Why The End Of Bull Market Isn’t Now

#1. Rising Interest Rates

The Federal Reserve has been raising interest rates now for a while and they plan to do so for the coming months until they get interest rates back to neutral. What does this mean?

During the last recession, the Federal Reserve helped to keep more damage at bay by having the ability to lower interest rates. By lowering rates, people and businesses could borrow money at a lower cost.

Now that the economy is doing well, they want to raise interest rates back up into the 3% range. The reason is so that when the next bear market does come along, the Fed will have a weapon in its arsenal to help deal with the slowing economy.

The Fed feels confident in raising rates because of the strong economy. If they were seeing a slow down coming or lower inflation, they would back off. But they don’t see either of these things, therefore they are continuing to raise rates.

In other words, they see the strong economy and bull market continuing.

#2. Shifting Risk

As a result of the higher interest rates, we are seeing people shift money from stocks to bonds. To understand why this is so, we have to look back to the last recession again.

The Fed dropped interest rates and as a result, income investors were having a tough time earning interest on bank accounts, certificates of deposit, and even bonds. In order to get the return they needed, many poured their money into high quality, dividend-paying stocks.

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