Some stock market strategists view the market’s 100 percent rebound from its March 2009 lows as evidence that it’s headed for more gains. But Bill Spiropoulos, CEO of CoreStates Capital Advisors, has a different take on the market.
While stocks could advance further in coming days, the next few years won’t be pretty, he tells CNBC.
“We’re only 12 percent from the (market’s record) high, and I think this is really a second opportunity whether you’re a bear, bull, pig or chicken to re-think strategies."
|A trader works on the NYSE floor. (Getty photo)
The market has been in a powerful downtrend for 10 years, he says. “We probably have three or four (more) to go.”
The Standard & Poor’s 500 Index has gained 18 percent during the past decade. But that translates to increases of less than 2 percent a year and includes two market crashes.
While Spiropoulos is bearish on stocks, he’s not exactly a raging bull on Treasurys either. “Treasurys are not toilet paper, but by the same token you can’t be snug as a bug with the 10-year (Treasury yield) at 3.5 percent,” he said. He expects bond yields to keep rising.
Rob Arnott, chairman of Research Affiliates, is skeptical about stocks too.
“Concentrating the majority of one’s investment portfolio in one investment category (i.e. stocks), based on an unknowable and fickle long-term equity premium, is a dangerous game,” he wrote in his latest newsletter, MarketWatch reports.
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