Two Wall Street pros say this bull market is just getting started. The long-term trend of rising stock prices could last a total of 20 years or more before the uptrend ends. But that doesn’t mean short-term swoons won’t spook investors along the way, they warn.
“I don’t think this is an aging bull,” says Brian Belski, chief investment strategist at BMO Capital Markets. “Our market call, which we initiated in 2009, is that this bull will last 20 to 25 years. We are not even halfway through it.”
Tune out the negativity, says Belski. “The expansion in the economy and corporate earnings is just beginning” after years of malaise, he says. There’s no real signs of euphoria in the broad market like in bitcoin or marijuana stocks. Cash is still flowing out of – not into -- stock funds, he says. And rising interest rates isn’t the death knell for stocks that bears say it is, he adds.
Mike Wilson, U.S. equity strategist at Morgan Stanley, is calling this a “secular” bull market — or one that lasts decades, not years, similar to the long upturn that began in the early 1980s and didn’t peter out until 2000 (despite some brief, yet sizable drops along the way, such as the 1987 market crash).
The next bear market, or 20% drop, won’t be like the mega-bears of 2007-09 or the dot-com crash in 2000, Wilson says. Instead, the market’s major trend will be up for years to come, despite periodic bouts of weakness like the 10%-plus drop in February and short bouts of despair and even bigger drops.
Any Wall Street strategist that is not bullish has a short career. We definitely can keep this bull market going if central banks can gin out another $21 Trillion in Quantitative Easing. Why not! Just encourage more stock buybacks and build more over capacity. Just to give the old bull a sustainable kick another unfunded tax cut. No worries this all makes sense. YOLO as the say.