Market Monday: Bull Market For Another Decade?

Who: Steve Chiavarone, Federated Investors

What: Bull market will continue for another decade.

When: Monday November 13, 2017

Why: Millennials will need to invest in equities in order to fund retirement due to low wages and high debt levels.

My Thoughts

I think that this is simply another talking head on CNBC. He could be spot on but more than likely he will be wrong on his prediction. Regardless I am guilty of paying attention at times to the news. Personally I enjoy staying up to date with the markets. Overall I think this has virtually no effect on anyone’s returns. For me it is more of a personal choice to keep up to date with what is going on in the business world.

As for the headline of this story in particular I think the reasoning is a bit of a reach for why a bull market will continue. Every generation has a need to invest in equities to fund retirement and millennials are no different. My call is that millennials turn out to be very similar to other generations and lead a traditional lifestyle as they get older that matches those of their parents. With the millennial generation I think everything is just pushed back as they wait to take the “big steps” that life brings. The biggest piece of the investing puzzle for this generation will come when the massive wealth transfer happens.

The reason I picked this story for the Monday Market article is that I think it is important to address how you take in the media. Most of us are guilty of reading finance columns if you are a serious investor. I think it is entertaining and enjoy hearing about what others think. However, I make sure that I never act on any information from something I hear on TV or from an article I read. My take away would be to always ensure you take the time to do your own home work before making any investment and ignore the noise.

What Are Your Thoughts?
  1. Do you believe this bull market will continue to rage?
  2. How do you tune out the noise of various predictions on Wall Street?
  3. What sources do you read when looking for articles about the financial markets?

Spread The Wealth!

17 Comments on “Market Monday: Bull Market For Another Decade?”

  1. Interesting perspective. On your questions:

    1. Do you believe this bull market will continue to rage? – I hope so, but no one knows for certain.

    2. How do you tune out the noise of various predictions on Wall Street? – I don’t watch / read (or at least try not to access the “noise”), but it’s hard to ignore. I’m leaning toward liquidating my single-name holdings just to not have to monitor and/or care as much.

    3. What sources do you read when looking for articles about the financial markets? – Various sources (among others): Bloomberg, WSJ, Forbes, Economist, etc.

    Balanced Dividends recently posted:

    1. Impressive that you don’t read up about it. I feel like it is the norm for me to read some articles each day with a cup of coffee in the morning!

  2. I’m currently in Hawaii and there’s cable TV. My husband was watching the business news channel (we usually don’t have cable at home) and of course Jim Cramer came on, and also some other business “anchorpeople” (?) I noticed that they sounded like they were exaggerating and had a lot of excitement in their voices (I wasn’t in the room but just heard their voices). I can see how watching this regularly can somewhat ‘sway’ you to think a certain way. That’s why I usually steer clear of TV and the Wall Street ‘noise’.

    1. First off hows Hawaii? Love that place what island are you visiting? I don’t watch TV to often when it comes to financial news most of the time it is just them trying to fill up a full day of conversation. There isn’t enough interesting things that happen each day in the world of finance to be pumping everyone full of news. Enjoy your trip!

  3. Hi DM! Some thought provoking content here. First let me say that you are spot on, Millennials are on track to be no different. We might be later but really kind of the same. Its simply tough to break out of general human behavioral patterns. It takes hard work and perseverance – do they still teach that in school? Kidding!

    Anyway, I love CNBC too. It my version of a trashy sports channel that I like to binge on. But if you want to really know whats going on – check out WSJ or Bloomberg.

    Other answers:

    1. Do you believe this bull market will continue to rage? Absolutely, it ain’t about bull or bear. Retained earnings (re-investments in the company) propel value overt time. Bull/ bear – who cares.

    2. How do you tune out the noise of various predictions on Wall Street? Nah, I love it. Give me more of that. But just like when you’re drinking, stay away from the controls ;). On the flip side, if you feel yourself doing something everytime Jim Cramer screams, then absolutely tune it out. In fact, I wrote a whole article about that here:

    1. Hey HM! Love hearing from another millennial’s perspective that our generation is actually more similar then to those of our parents. I think at the end of the day most people want the same things in life to varying degrees of course. I used to watch CNBC a lot more in college (finance major) it is trash finance TV but its also entertaining, who doesn’t like the lightning round cmon!

  4. He Mr. Millennial, I read the Wall Street Journal to get my business and market news. I used to watch CNBC a lot, but have lost interest over the years. As I have gotten older, I read/listen/react less and less to the mainstream financial media. When I was younger I chased the next hot investment to some degree with mixed results. As for how long the bull market will last, I have no idea, but it’s always good discussion. Tom

    1. WSJ is a good source for information. I feel like the stories there have substance and thought put into them. A lot of sites just have flashy titles to get views but I tend to look it all over, thanks for sharing.

  5. I’m a big fan of Peter Schiff’s and I remember him getting laughed at and mocked on live television for his views that the housing market was going to crash and we were going to fall into a recession. I think it’s better to NOT bank on a bull market continuing for years and years and instead be more focused on the long-term. Ultimately if you were able to avoid selling stocks back in 08 you are fine today. Maybe not the best stretch but that’s why it’s important to have a long-term outlook. Though this is all easy for me to say as someone in their late 20s ; )

    1. Hi David, I agree that it is best to plan for the worst and hope for the best. Although I think sometimes when people stress about the next downturn they sometimes talk themselves out of investing altogether which hurts more then anything. I am in the same boat as you and would almost be excited for a pull back (selfishly) I completely feel for those nearing retirement though and being worried.

  6. While I don’t see how the bull market going at the same rate, I think $10,000 invested today would be worth significantly more in 10 years. That isn’t to say there won’t be a big dip along the way but overall I believe we will have trended up. I’m a little bit of a perma-bull though. I guess that happens when you start working in 2011 and have never known anything else.

    1. Hey Grant, I don’t think there is anything wrong with the optimism. I would take your side of the bet that $10,000 dollars invested today will be worth significantly more in the future as well. I think that is why it is important to have long term goals and continually invest and stay invested. I do think that there are business cycles though and it is worth noting we are late in this bull market so people should ensure they are in strong financial standing ahead of a possible turn around.

  7. I personally don’t think it will continue to rage. I think the bull market will continue but the growth will be very slow and tepid. But honestly what do I know. (I thought the markets would dip the moment Trump became President and oh boy was I wrong)
    I look at financial news daily, just very broad financial news, whatever is on the homepage (Money CNN). I like to keep abreast on the latest news. I’ve also learnt take any analyst’s report with a pinch of salt. Ultimately the market just do what it wants, no one is able to predict it.

    1. I am with you I enjoy checking in with financial news but just skim over most of the articles without thinking twice about them. I was thinking the market was going to drop in 2015, 2016, and 2017 and I was wrong! Luckily I didn’t change the game plan of continually investing and it has worked out good so far.

  8. I don’t think I’d count on it continuing for too much longer. Things tend to go in cycles we can’t time or predict. I’m just going to keep on dollar cost averaging for now… My advice to it to monitor passively and let ‘er ride.


    1. I am with you I feel like we have entered irrational exuberance. However, every time I think that I am wrong and that is why I am with you on continually investing for the future. I do hope that those nearing retirement are comfortable with their asset allocation and can stomach a pull back WHEN we experience the next one.