The Dow Jones Industrial Average recently hit a historic high — again! From a March 6, 2009, low of 6,624 during the Great Recession, in six years it has skyrocketed to more than 18,000. Investors are asking themselves, “How long will this Bull Market last?”
Normally, what drives the stock market higher are increasing earnings, and the Fed lowering interest rates, which makes it cheaper for companies to borrow money and make more profit.
However, this time around the stock market has been fueled by a Fed on steroids. It has dramatically reduced interest rates to almost zero. While the government has increased our Federal debt in just six years from $10.6 trillion to more than $18 trillion – that’s a 70% increase!
To help us gain perspective, it took us 205 years (74,984 days from Independence Day on July, 4, 1776 to October 22, 1981) to incur our first trillion dollars of Federal debt. We took on our last trillion dollars of debt in about 365 days.
How long is this Bull Market going to last and how is it going to end? I don’t know. But what is driving the market clearly is not sustainable.
I do know that the Lord warns us of the dangers of debt. “The borrower is slave to the lender” (Proverbs 22:7). I can’t encourage you strongly enough to learn how to handle money God’s way. And that means to be generous, save, spend wisely and get out of debt!