Hard to believe that the bear market that “couldn’t happen” just celebrated its third anniversary. Three years ago as of 24 March the S&P 500 topped out at 1553. Little did we suspect it’d mark any sort of top at the time. In fact most of us, judging from the irrational exuberance of years prior, figured it was just another number to surpass on the stock markets epic never-ending journey into the stratosphere. “Dow 36000″ indeed.
Stocks weren’t supposed to fall for three straight years and dagnabbit, they certainly aren’t supposed to fall for four years. That has almost never happened before so by virtue of Newton’s little known “5th corollary of my secret 8th law”, (”if it didn’t happen too much before and we hope and pray it doesn’t happen again, maybe it won’t”), we’re in good shape for a rousing stock market rally and the end of the bear.