Why I’m Still 100% Invested in the Most Disrespected Bull Market in History

“A bull market is one that can shake off even bad news.” — Don Gimpel

In addition to the old saying on Wall Street above, there‘s another one that says: “bull markets climb a wall of worry.” (All of these are found in my book “The Maxims of Wall Street” — to order, see below.)

Last week was a case in point. Saber-rattling between President Donald Trump and North Korea’s militant dictator Kim Jong-un knocked the market down, but only temporarily. My Korean contacts, who have lived with North Korea’s empty threats for more than 50 years, aren’t worried and consider Kim Jong-un a paper tiger who engages in never-ending rhetoric. He knows his regime would be annihilated by vastly superior U.S. weapons. I was at a Yankee baseball game last week with Steve Forbes, and he told me that he favors strong sanctions against North Korea, but he agrees that rationally Kim Jong-un should back off. But is the dictator crazy like a fox, or just crazy?

Stocks are back on track to hit another all-time high. Oil and gold are making a recovery, and we are invested in both.

Earlier this week, I watched Jeremy Siegel, the Oracle of Wall Street, and Robert Shiller, the Yale perma-bear, debate each other on Yahoo Finance TV. Shiller rightly pointed out that stocks are richly priced, but Siegel countered that interest rates are near historic lows. With potential tax reform, stocks could move substantially higher. I’m firmly in Siegel’s camp these days, and staying 100% invested. The golden age of investing is still with us. Even long-term Treasuries are in an upward trend!

And yet average investors are running away from the market, thinking all the profits have been made. Mutual funds are seeing a net withdrawal this year. Even the majority of Wall Street analysts are skeptical that stocks can continue to rise.

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