This morning, I made note of the difference between secular bull and bear markets. I described secular bear markets as being longer-term, characterized by strong rallies, vicious sell-offs and earnings contractions.
Secular bull markets include an investor willingness to pay more and more for the same dollar of earnings even as stock prices rise. (I’ll revisit this issue next week.) The simplest way to think of secular markets is as longer eras driven by overriding dynamics that define the period ether positively or negatively.