by Jeffrey D. Saut
I got an email last week that read, “What do I do now?” I replied, “I don’t know what you mean.” She wrote back, “I didn’t buy the February lows that your model told us to buy and I didn’t buy any of the stocks on your ‘buy list’ the Monday following the Brexit Bashing. So what do I do now?” I told her I continue to think we remain in the same secular bull market that began in March of 2009 and I think it has a lot farther to go. Yes, I know the equity markets get overbought from time to time. Yes, I know there will be pullbacks. Yes, I know certain valuation metrics are historically expensive, but I also know how secular bull markets work. I have written many times about the fact that there are not many of us left. There are not many of us that have seen a secular bull market. I don’t know where the market mantra came from that a 20% rally is a bull market and a 20% decline is a bear market, but I do not believe that’s the case. Well, it might be the case in the shorter term for tactical bull and bear markets, but it’s not the case for secular bull markets!