Tags: Smith | bull | market | halfway

Haverford's Smith: 'We Are Only Halfway Into This Secular Bull Market'

By Dan Weil   |   Friday, 01 Nov 2013 11:04 AM

Stocks are only halfway through their upward cycle, says Hank Smith, chief investment officer for money manager Haverford.

"Let's make no mistake. We are in a secular bull market here and we have more upside to go," he tells Yahoo.

"There are still plenty of opportunities with high-quality, financially strong, blue chip companies."

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Throughout the market, you can find stocks with dividend yields higher than bond yields are and dividend payouts that are growing to boot.

"In every single sector, you still have opportunities to get income from equities as opposed to bonds," he explains.

"That's a win-win."

As for stocks' cycle, "March 2009 was a generational low" for the market, Smith notes. "We think we are only halfway into this secular bull market."

The Standard & Poor's 500 Index hit a low of 667 in March 2009. So if Thursday's close of 1,757 for the index represents the mid-point of the bull market, the peak would be 2,847.

Don't be surprised to see a market correction, Smith says. But, in the cycle between fear and greed, "we're a long way away from greed," he said.

"Confidence is starting to slowly seep back into the market, . . . and we have a long way to go there."

But, he adds, "We are a long way away from greed."

Smith isn't the only one saying stocks may be poised for a correction after hitting record highs Tuesday.

"We just think the market is ready for a pause," Jim Russell, senior equity strategist for U.S. Bank Wealth Management, tells MarketWatch, noting that the market is "a little bit tired here. It has had quite a run."

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