There's little disagreement over whether bull markets are good or bad. Stock prices rise, wealth is created and prosperity is the order of the day. But there is disagreement over what the main cause of a bull market is.
Economists tend to believe bull markets are created by a growing economy.
Many investment directors believe it's the prospect of rising earnings for individual companies. Others point to exchange rates, tax rates, long wave market cycles, foreign economies or technological innovations as the ultimate cause of bull markets. In our opinion, however, none of these are the major cause of a bull market. We don't dispute that some of these factors affect the market in one way or another. But we believe a single factor is responsible for thrusting most stocks ever higher.