The stock market's continuous ascent to all-time peaks — both the S&P 500 and Dow Jones Industrial Average have recently set new record closing highs — hasn't dented the enthusiasm of long-time bulls.
They were encouraged by the European Central Bank's bold easing program, announced last Thursday; the 217,000 gain in U.S. May non-farm payrolls, announced Friday; and the recent rebound in small-cap and technology stocks,
The Wall Street Journal reported.
Jeffrey Saut, chief investment strategist at Raymond James, turned optimistic on stocks when they hit their bottom in March 2009, and he's still optimistic.
Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now
"It's been very resilient, but that's what bull markets are," he told The Journal. "The bull market is going to extend for a lot longer than anybody thinks."
The S&P 500 has soared more than 190 percent from its March 2009 low. It has generated a total return of 6.5 percent so far this year.
"Investors are becoming more sensitive to fundamentals and prices and that's a good thing," Seth Masters, chief investment officer at Bernstein Global Wealth Management, told The Journal.
"Growth is continuing at a moderate pace, but not fast enough that would create this inflation problem," Masters said. "If anything, inflation is lower than the Fed would like," which should mean continued loose monetary policy.
The S&P 500 slipped 0.48 of point, or 0.02 percent, to close at 1,950.79 Tuesday. The most widely used benchmark for mutual funds closed at an all-time high on Monday, its fourth record high in a row, the Associated Press reported.
Some analysts argue that this success rests on shaky ground.
"I've never seen a rally that has been so hated and mistrusted before," Dan Veru, chief investment officer at Palisade Capital Management
told the AP. "People ask me, 'Why is the stock market up? When should I bail out before the next crash?'"
He said most people don't feel like the economy is strong enough. "It's slow but improving and if you're a stock investor, that implies higher corporate profits and, eventually, higher stock prices," he said.
Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now
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