Bust Cycles And The Fed
Many investor and stock traders will always say that the great bull market began in 1982 when President Ronald Regan took office. While the S&P 500 Index did make a pivot low around that time the great bull market actually began much earlier than that. Believe it or not the great bull market began in 1974. At that time the Federal Reserve Bank had the Fed funds rate(overnight lending rate to the large major banks) around 12.92% in August of 1974. In September 1974 the Federal Reserve Bank began to slowly lower the Fed funds rate and that marked a significant low in the S&P 500 Index and the Dow Jones Industrial Average. The rally or boom cycle from the 1974 stock market low lasted about 13 years. The 1987 stock market crash was the top of that boom cycle.
