An extended cycle?

The bulls may be justified in their optimism, but a sharp global correction is on the cards in 2018

We are now in the ninth year of the bull market in equities, specifically, and financial assets more broadly. The bull phase began in the US, with the S&P 500 bottoming in March 2009 at 667. The equity bull run has now extended more broadly with Europe, Japan, and emerging markets (EMs) also joining the party. Since hitting the bottom in 2009, US equities are up about four times, with the other regions rising by between two and two-and-a-half times. This year has been exceptional in that all regions and markets are up across all asset classes. Given the magnitude