investmentyoo

Investment History Episode 13: The Great Bull Market of the 1990s, How Did the Internet and Globalization Heat Up the Stock Market? The U.S. stock market of the 1980s opened the door to a new bull market through falling inflation, lower interest rates, corporate mergers and acquisitions, and financial innovation. Although the historic Black Monday crash of 1987 shocked investors, the U.S. economy and corporate earnings did not enter a prolonged collapse, and the market recovered its stability relatively quickly. As the 1990s began, investors developed an even stronger sense of optimism. Inflation remained relatively stable, interest rates followed a broadly declining long-term trend, and the end of the Cold War and the expansion of globalization gave U.S. companies access to wider markets. Personal computers, semiconductors, software, mobile communications, and the internet spread rapidly, encouraging the belief that technology would permanently transform economic productivity. The cul...