The biggest bull market of the past eight decades – and the longest – began soon after a huge market scare. On Oct. 19, 1987, which would become known as "Black Monday," the S&P fell a whopping 20 percent. There were concerns about federal tax policy and interest rate hikes at the time, but nothing prepared investors for a one-day fall of that magnitude. The market rose and fell inconclusively over the next month and a half and then began a relentless rise that would last more than 12 years without a 20 percent correction. Stocks rose as interest rates fell and the economy grew. Near the end of the 1990s, the market roared ahead on enthusiasm about new Internet companies. By the time the market peaked in early 2000, the value of stocks had increased nearly seven-fold.
Since then, stocks have spent more than a decade floundering, first from the dot-com crash of the early 2000s and then the financial crisis of the late 2000s. From its record-setting peak in 2007, the S&P would take another 5-1/2 years before setting a new record high on the last trading day in March 2013. The index closed above the 1600 level for the first time in early May. Still, the S&P would have to rise above 4600 to match the performance of the 1987-2000 bull market.
