Forget the naysayers! This bull market has another 15 years left in it. At least that’s what Brian Belski, chief market strategist at BMO Capital Markets, says while admitting “the believability of this market is very low.”
Belski’s call doesn’t mean we’re in for a decade and a half of smooth sailing. “Stocks are rarely linear for long. Near term we could be in for some bumpy trading...If we get some sort of a surprise correction to kind of cleanup...near-term complacency,” he says, “longer term we are in the camp that U.S. equities are the place to be. They are the most stable asset in the world.”
As such, Belski argues, “North america will drive growth going forward for the next five years at least.” He suggests that will give emerging markets in Europe the time they need to straighten out their issues.
One of the clues to this call, Belski says, is simply being contrarian. He notes, for instance, many on Wall Street were calling for a rough start to 2014 before a better second half. So far it would seem we’re shaping up for precisely the opposite. “You have to be really concerned and careful about following consensus too closely because for all intents and purposes it’s been wrong for five years,” he notes.
If you’re still nervous to plunk down your cash for such a long haul Belsky says let the yield curve be your guide, and not just for the intermediate term but thje long term too.
Doubling down on his call he says “we are several years away from any inversion of the yield curve.”
- BMO Capital Markets