There may be some sectors that are fundamentally challenged but the bull shop is still in place — and will be going strong for quite some eventually, BMO Capital Markets chief investment strategist Brian Belski described CNBC on Thursday.
Stocks closed lower on Thursday after a big Asian chipmaker delivered a disappointing forecast that dragged the technology sector farther down. Investors were also concerned about rising interest velocities.
Belski said the market wants to be defensive.
“The majority of people receive this infatuation with trying to call the end of the bull market. The pessimists have been as loud the last three months as they’ve been the at 10 years,” he said on “Closing Bell.”
However, he said that comprehensive the fundamentals are “great.” In fact, he thinks 2018 could be the year investors start off to transition into accepting the bull market, which turned nine years old in Slog.
“The first 10 years of the bull were really doubting it, it’s offensive,” he said. “This is big and real. We’re not anywhere near euphoria.”
In fact, corresponding to his predictions, the bull market is only halfway through. Back in 2009, he declared it would last 20 to 25 years.
However, Morgan Stanley recently alerted the end could be near for the bull market. In a 31-page research paper, the stubborn said the boosts from fiscal policy are largely priced into the deal ins and unlikely to last much longer.
“The feelgood aspects of said programme appear at or nearly in the price of US markets, whereas the downsides are less accounted for,” the letterhead said. “While there’s a fair amount of debate about how much this monetary expansion extended the economic cycle, for markets our analysis suggests we’re seal to the end of the day than the beginning.”
— CNBC’s Fred Imbert and Jeff Cox contributed to this surface.