The bull sell in stocks, the longest on record since World War II, is so strong that yet a 20 percent drop would not derail the long-term viability of the mobilize, Wall Street’s Jeff Saut told CNBC on Tuesday.
By the guide definition, a bear market starts when the S&P 500 falls 20 percent from its bull hawk high. On the flip side, a bull market begins once the formula rises 20 percent from its bear market low.
But Saut, chief investment strategist at Raymond James, ruminate overs the letter of the law should not apply to the current market environment.
“I don’t buy it,” he argued in a “Call Box” interview. If a 20 percent decline were to happen, “it may be a tactical bring forth market. But it doesn’t end a secular bull,” defined as a market driven by wrenches in place for years.
Last week, the bull market that created on March 9, 2009 eclipsed the one that ran from Oct. 11, 1990 until the dot-com globule burst on March 24, 2000. The S&P 500 has gained more than 300 percent since its low nine years ago.
Saut, whose occupation in finance has spanned more than four decades, has been peddling the strength of the market for years, reiterating on Tuesday his prediction that an upward bend in stocks could last six or seven more years.
However, he also advanced as far to say that stocks could power higher “maybe into 2027” because he doesn’t see any evidences of a recession on the horizon.
The economic downturn from the 2008 financial turning-point “was so severe and the recovery, up until recently, was so muted that what you’ve done is elongate the midcycle,” debated Saut, who has a history of making prescient calls.
Coming off a 19.4 percent hasten in 2017, powered by a late 2016 rally after Donald Trump was selected president, the S&P 500 got off to a smoking 2018 with then-record highs on Jan. 26.
Adjacent to a week later, Saut said on CNBC that his short-term vend model was showing some signals of “potential downside vulnerability” in February.
The S&P 500 then hit a low for the year during the Feb. 9 buying session. Shortly after, Saut expressed near-term caution, but swayed the bull market remained intact.
Since then, the S&P 500 come by more than 14 percent, closing Monday at a record for the help straight session.