Tags: Stack | stocks | Goldberg | bull

Money Manager Stack: Keep 83 Percent of Your Assets in Stocks Now

By    |   Monday, 10 November 2014 10:33 AM

Market guru Jim Stack, a money manager and editor of InvesTech Research Market Analyst newsletter, is bullish on America.

He sees solid growth with low inflation a perfect recipe for stocks.

Low oil prices and low interest rates along with rising consumer and business confidence should allow the 5 ½-year bull market to continue for months, he says, investment adviser Steve Goldberg writes in an article for Kiplinger. So Stack recommends that you 83 percent of your investment portfolio in stocks.

"Why should you care what Jim Stack says?" Goldberg asks.

"Because Stack has been nearly perfect in his market calls over the past decade. He correctly predicted the onset of the 2007-09 bear market, flipped to a bullish stance near the bottom in March 2009 and has remained steadfastly positive."

In fact, the recommendations from his newsletter have returned 9.9 percent annualized in the past 10 years, which is an average of 2 percentage points per year more than return on the S&P 500, according to the Hulbert Financial Digest, Goldberg notes.

As for the economic fundamentals, "these are perfect conditions for a bull market," Stack says, according to Goldberg. "The probability of a recession — and accompanying bear market — before the end of 2015 is remarkably low."

Both the S&P 500 Index and the Dow Jones Industrial Average reached record highs Friday after a strong jobs report.

"We're moving toward pause mode and a period of digestion following the rally of the past few weeks," Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, tells Bloomberg.

"The market rallied in expectation of a generally positive employment report, which occurred with non-farm payrolls over 200,000. But average wages being flat implies the pace of growth is somewhat slow, so valuations may increasingly become an issue."

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Market guru Jim Stack, a money manager and editor of InvesTech Research Market Analyst newsletter, is bullish on America.
Stack, stocks, Goldberg, bull
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2014-33-10
Monday, 10 November 2014 10:33 AM
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