Greg Guenthner

“Many people I speak to see the stock market as a place to get burned,” writes an observant reader. “They are very resistant to reinvesting. They want SAFE.”

I’ve noticed this, too. It’s a byproduct of a decade of turmoil. Investing form 2000-2012 wasn’t easy. You had the dot com bust. Then the housing bubble. Then the worst market crash in decades thanks to a crippling financial crisis.

So yeah, you could say that investors are bit hesitant to jump back into the fray.

It’s also no surprise that the latest round of new all-time highs have spooked quite a few investors…

But when we turn to the numbers, there’s no reason to fear new highs just yet. S&P Capital IQ Chief Equity Strategist Sam Stovall has the stats to prove it. Stovall analyzed the 11 bull markets since 1949. Each of them lasted an average of 57 months. And (here’s the kicker) 7% of the trading days within the bull markets set all-time closing highs.

I suspect this infatuation with new highs will vanish in a few months. It just won’t be interesting news anymore. The only reason new highs are compelling right now is because the market has finally clawed its way out of a massive, decade-long secular bear.

Here’s Stovall with more (via Business Insider):

“During the past few weeks, the financial media has constantly reminded investors that the S&P 500 has recorded successive all-time closing highs. They also make it sound as if we should enjoy these days while they last, for this bull market is therefore likely to end in the very near future. I don’t know why they say that, other than to instill fear and thereby ensure that investors stay tuned. History, on the other hand, shows that new highs are typical in a maturing bull market.”

Snap out of your bear market mindset. Stocks are proving exceptional returns this year. It’s high time you answered their call…

Regards,

Greg Guenthner
for The Rude Awakening

You May Also Like:


A Newfound Appetite for Stocks

Greg Guenthner

It’s been a while since Main Street displayed any appetite at all for stocks. That might change very soon… Thanks to the market’s stellar performance this year, folks are finally beginning to jump back into the market.

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

Protect and Serve Thyselves

Ryan Mcmaken

The police operate in their own self-interest, the same as every other human being on the planet. For that reason you cannot rely on your local police department to keep your best interest at heart. As Ryan McMaken explains -- and Ferguson Missouri demonstrates -- your police department’s is not necessarily interested in “protecting and serving you”...


Minerals vs. Marijuana

Douglas French

It might go against conventional thinking, but following the crowd usually makes you miss the real opportunities. At one monetary metal conference recently, the smartest guys in the industry sat down to discuss where these real hidden gems lay. But where does marijuana fall in this debate? Doug French has the scoop...


The Growth of Big Data is Unfathomable

Josh Grasmick

One of the most important trends in the evolution of technology is the advent (and growing importance) of "Big Data." And yet, some people are still confused about what it is - not to mention grossly unaware of just how massive the market for data has become. Today, Josh Grasmick offers an insightful explanation...


4 Ways the Government Is Set to Take Your Money

Byron King

The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...