That is the main question occupying analysts and investors today. The current economic expansion has gone on so long that it will set an all-time record this year. Growth stocks have soared to seemingly unsustainable heights. And yet, each time it looks as though the market finally has to pull back, it rises even higher. Stock market forecasters are not the only ones who are a little perplexed.
Economists have the same problem.
It seems every time they project the next quarter's growth, they underestimate - not by just a fraction, but often by more than a percentage point. In fact, there is no longer a question of whether we are in a new era. The market has already answered that question. But having said that, it is also a truism that historical patterns inevitably reassert themselves, if you look beyond the specific questions to more general ones. Many specifics about investing have changed since the 1982 recession.