Far from being near its end, the current bull market is poised to move “substantially” above its current level, says one expert.
Jeffrey Saut, Raymond James Chief Investment Strategist, was on BNN’s Market Sense yesterday to talk about a bull market that he thinks many are misunderstanding.
The mistake many are making, says Saut, is in measuring the current bull market from the nominal price low of the market in March of 2009 instead of the real valuation low, which was on October 4th of 2011.
“Nobody measures the 1982 to 2000 secular bull market from the nominal price low of December ’74,” says Saut. “They measure it from the valuation low of August of ’82.”
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Saut says the U.S. GDP is poised to rise and will stabilize at a 2.5% to 3% annualized run rate and will strengthen further in 2015. The Raymond James strategist points to catalysts such as breakthroughs in healthcare and technology scores of large projects such as South Africa giant Sasoil’s $90-billion project in Louisiana, which he wrote about on his website Monday.
“The implications of projects like this are “transformational,” a word often used by Joel Kurtzman in his book, “Unleashing the Second American Century,” wrote Saut. “This is exactly what I have been talking about for the past few years: Energy Independence, the American Industrial Renaissance, better jobs, etc. Joel believes the four forces for America’s economic dominance are: soaring levels of creativity; massive new energy reserves; gigantic amounts of capital; and unrivaled manufacturing depth. As Joel states, “It’s like taking America’s industrial strength and layering in Saudi Arabia’s energy on top.” While most of the media is ignoring this, the stock market seems to be getting it.