This is the way long-term bull markets survive and thrive

Early equals wrong and it isn't until the masses buy every dip that bull markets begin to top out.
JUN 19, 2014
(Part 1 of a 3-part series) The bull market of 2009-2014 has to be one of the most disavowed, unloved bull markets of all time. Each and every time it sees even routine weakness, bears come out of the woodwork with calls of 1929, 1987 and 2007 all over again. And then stocks stop declining and continue on their merry way higher. This is exactly how long-term bull markets survive, thrive and work higher. More: The challenges of an intermediate-term bond bull I can't tell you how many very smart (and some not so smart) industry colleagues have been either calling for the end of the bull market or for a 20% decline for years. I read their weekly newsletters and just scratch my head, not because they are wrong. I am wrong more times than I want to remember. It's okay to be wrong in this business, but you cannot stay wrong for months and months, quarters and quarters. You can't break out prominent interviews and articles from others who are also wrong and use them to substantiate your wrong position. Too many people sit and wait with losing positions and reason it away as being early. In this business, early equals wrong. It isn't until the masses buy every dip that the bull market begins the topping process. Remember, I said “begins” not “bull market immediately ends.” If you remember late 2007 and early 2008, stocks pulled back during the fourth quarter and the masses bought. And when the market had a 20% decline in January 2008, only short-term sentiment became sufficiently negative to support a rally. Intermediate and long-term sentiment remained positive until the Lehman Brothers fiasco, which is why it was difficult to hammer out any type of significant bottom. Paul Schatz is president of Heritage Capital

Latest News

Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool
Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool

Firms continue their quest to attract and retain the best advisor teams.

Most advisors say AI portfolio construction is worth $500 a month
Most advisors say AI portfolio construction is worth $500 a month

A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.

CAIS embeds Claude AI into advisor workflows for alternatives intelligence
CAIS embeds Claude AI into advisor workflows for alternatives intelligence

The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.

FINRA puts structured product supervision under the microscope
FINRA puts structured product supervision under the microscope

The regulator is scrutinizing how some firms oversee concentrated positions in complex "worst-of" notes – and wants answers.

RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm
RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm

Meanwhile, Carson Group fully integrates a decades-old practice in Phoenix, Arizona, and Triad Wealth touts its 5x growth to hit a $2 billion milestone.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline