Monday 14 August 2017

US stock market declines but bull run may not be over

The US stock market fell 1.4 percent last week but some bulls remain undaunted.

John Tobey suggested that “it's time to ride stocks and leave the worrying to others”.

Tobey said: “[T]his market is filled with concerns – its calm rise, higher valuations and the supposed complacency of others. Therefore, there is no bubble to pop.”

Instead, Tobey said that recent warnings about stock investing dangers are a “bullish indicator”.

He quoted Richard Barley as saying that “the real time to worry should be when no one is worried” and that “day has yet to arrive.

Similarly, Jeffrey Saut, Raymond James' chief investment strategist, recently said on CNBC that “it's still a secular bull market”.

However, Saut noted that there has been “some technical damage done” and that he is “not sure the downside is over with”.

Nevertheless, for the longer term, Saut said that earnings have been coming in better than expected and that should help drive the secular bull market.

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