We are close to touching a new high in Indian equities. But do you know that more than half of worlds stock market are currently in bull market. How do we define a bull market, one rule of thumb is that a bull market is when the price is up more than 20% v/s 52 week low,and a bear market is when the price is down more than 20%.Looking at the chart, you may notice a few things.
First is the indicator really fires up at the start of a bull market e.g. 2003, 2009, and again around the start of the QE rally. Second, it goes low, like almost to zero, at a major market bottom (e.g. at the end of 2015). Third and final – the iShares MSCI ACWI (NASDAQ:ACWI) in local currency terms just made a new all time high last week. What does that add up to? In opinion of Callum, Thomas, the new bull market for global equities.
I agree that equities is the best asset to invest for next couple of years but i see excessive bullishness and complacency currently across markets as measured by VIX and explained in this article, if you are patient investor keep your powder dry and you will get better levels to invest.