Stock Market Rallies

As we start to look at the various stock valuation models, it is always a good ideal to reflect upon where the market is today in relation to its performance and length of its current bullish trend.

As the following chart indicates, the current bullish rally is approximately 4.5 years in duration, which is long by previous market rallies. In addition, its current performance during this rally is approximately +75% over the past 4.5 years, which is lags behind previous market rallies. Also, the current rally is below its linear-regression trend line. Will we have a revision to the mean (point on the line) or will this market rally continue to underperform?