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Bull Run Far From Over?

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  • Description

    Jeff Kleintop of LPL Financial gives his outlook for the markets.

  • Duration 3:14
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Off to a slow start but I'm not worried you know why our next guest says don't worry the bull run is far from over Jeff -- top.

LPL financial chief market strategist joins us thanks for being with us -- So give us again for your optimism while the Dow down one point three today.

How has -- well you know this fourteen Dell's global may be with us for a while have we hit thirteen thousand last year it took almost all -- for -- to break through to the upside so.

Could be -- for a while but look.

Valuations.

Are really cheap I -- you hear that a lot -- listen every bull market for the last since World War II.

Has ended at a much higher price earnings multiple that we're -- now usually around seventeen or eighteen.

Or only fourteen and a half now it's very unlikely that this bull is over at these valuations you know I've been pointing out that three big -- -- that held stocks down are now gone right European meltdown China slowdown US government shut down.

So what is the next big bogey man that could stop stocks from rising more.

Well you know -- can get a different form right so -- -- financial risk is transferred itself.

Into an economic risk now is maybe the -- starts to weaken up and for its -- in a recession.

So there's some negative there certainly there's some risk here now of the death by a thousand cuts as we look at this.

-- fiscal cliff having turn into many many many smaller column I don't know potholes.

Here all over the course of the year those are risk and then of course there's always geo political risk that can come back to the forefront.

And we CNET -- -- -- -- -- the last few years and all those things can get some volatility in these markets.

But none of -- likely to give us a big bear market that's -- I think you wanna buy these steps -- it sound like the lack crisis lack of fear now you point out that every time the Dow passes up through another 1000 mark milestone it takes months and months to really truly break out of that -- head on to the next what.

You -- from 111000 to 121000 to ten months.

To located thirteen twelve months.

Thirteen to fourteen K.

Ten months how long would take this time with weak start seeing stocks Joseph Knight rises.

-- you know it could be it could be several months -- that Dennis look you know this is a very significant milestone we've all taken some time to get through.

Public.

This was October 2007 last time we were here and if you look at the 15100 milestone.

On the S&P 500 we've been here two times before march 2000.

-- October 2007 so this is more psychological significance than the others did as well it may take some time to break -- but that's good news for investors who've been underweight stocks.

This is -- time to come and start selling those bonds moved back into the stock market on the dips over the coming month it's about -- -- giving your upbeat attitude.

You like homebuilders and industrials -- that.

You know when you're gonna consolidating market wanna buy what's working to hold -- trend I think is going to be with us for some time demographics favorite.

They're the bad -- -- interest rates are certainly favor continuation housing.

Those guys are gonna continue to print money.

And on the industrial side you know listen we've seen business spending start to come back here we saw towards the end of the fourth quarter and and looking -- this year that's the key to get its economy kind of up off of -- sell off from -- hind legs here through the rest of the year watch very closely does manufactures I think you're gonna see some good profit growth there all right thank you -- little -- on a down day Jeff clientele candidates are.

Victims.

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