The run-up in stocks that has sent the Standard & Poor’s 500 Index soaring 94 percent from its March 2009 lows is done and gone, says financial adviser Scott Bleier, founder of Create Capital.
“The bull market ended at the beginning of the year,” he tells Yahoo’s Breakout. “We’ve been locked in a trading range for the whole year, though you may not have realized it until recently.”
The S&P 500 stands 2.9 percent higher than its 2010 close after a sizable drop during the past month.
Bleier says he’s neither a “perma bull nor a “perma bear” on stocks.
“We’re market realists, and one indisputable fact is that the bull market was born and bred by stimulus from the Fed,” he says.
And that hasn’t helped the economy Bleier, argues. “It has simply pushed assets to places they shouldn’t be, namely commodities. They got so high as to cause demand destruction and are still coming down.”
For example, after hitting $114 a barrel in April, crude oil prices have dropped to about $99 Monday afternoon.
Banks led stocks down Monday. “The markets are getting concerned that economic growth is not sustainable,” Mark Bronzo, a money manager at Security Global Investors, tells Bloomberg.
“Concerns over what the new financial regulations will require, and no real loan growth, continue to hold back these names.”
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