Is the U.S. Bull Market Running Out of Steam?

By Rich Weiss - October 26, 2017

There’s a lot of excitement around the stock market lately. Not only did the Dow Jones Industrial Average hit 23,000 for the first time on Oct. 17, but we’re now officially in the second largest bull market since World War II. It’s exhilarating.

But here’s what else I see: real economic growth has essentially been range bound for several years—somewhere between 2.0-2.5 percent real gross domestic product (GDP) growth. I see that as lackluster, and it’s what has me proceeding very cautiously in terms of the U.S. stock market. In fact, I prefer equities overseas at the moment. Just look at developed European markets, which have shown returns that are nearly double what the U.S. stock market has yielded year-to-date.

For more insight into what I’m keeping a pulse on, including the VIX index and the outperformance of large cap stocks over small cap, watch my latest quarterly video.

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      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.