Investors are 'scared to death' of the bull market ending, top strategist says

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Stocks may be at highs, but investors could be acting overly cautious heading into 2020.

Even more than that, they are acting as though they are "scared to death," says Jeff Saut, chief investment strategist at Capital Wealth Planning. He says most of the investors he talks to fear what may come in the new year."Secular bull markets tend to run 15 to 20 years. They're not interrupted by 20% to 30% declines," said Saut on CNBC's "" on Friday.

Stocks had a mixed day on Friday after the U.S. and China reached a phase one trade deal. The agreement includes some tariff relief, increased agricultural purchases, and structural change to intellectual property and technology issues. Saut explained that while markets endured a back-and-forth on Friday, he's still bullish heading into the new year.

"The market has crossed over between plus and minus so often today the only way to make money was to erect a toll booth at even," said Saut. "You've got the seasonality tailwinds. … Central banks of the world are printing money and that's all you really need to know. ... Going into year-end, I think the market trades higher.

"You have what a technical analysis would call a golden cross, where the 50-day moving average crossed above the 200-day moving average on the. The Small Caps have actually done pretty well since then, and it's not just the U.S. Small Caps. The European Small Caps had a similar golden cross on October 28The IWM ETF, which tracks the Russell 2000, is up 22% this year. The group began to participate more fully in the broader market rally this month.

 

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Trump has put so much sugar on the economy. Either this term or next we will be in a recession just like bush left it

It use to be spend money to make it. They dont spend nothing, so forget em . I hope the recession eats em alive

Well, SOMEBODY is going goofy. Must be Algos. Dumber than a bagful of hammers but they got the cash. 💰

They should if the Socialist Democrats win they should be very cautious. I would suggest simply vote for Keeping America Great it will be good for every American

algorithms are ready with fed printed minted new boomer bucks to get us to 60000 in no time!!! money is just a number when it’s printed infinitely!!!! buybuybuy!!!! stocks can NEVER go down anymore!!!! no thought required

If, for some reason, Dems win election, market will undoubtably crash.

Commiting crimes while given less regulations & scrutiny is a short sighted pragmatic reaction. Not an indication of economic stability (which we don't have with the welfare for billionaire corporations in place).

can you blame them?

The author points to prior secular bull markets but ignores context; post WWII, there was tremendous growth as the world had to be rebuilt. In the 80s, Reganomics expanded debt to cause growth. This bull market doesn't get the benefit of either of those growth catalysts.

QE

This has been an amazing economy and market. Caught many off guard with its resilience.

CNBC 🤣🤣🤣🤣🤣🤣🤣🤣

Your network is a disgrace. Good thing you provide real time tickers.

Depends on earnings and those are still to show up, so until then a market at ~18x forward earnings is not necessarily cheap.

Cant we enjoy nice things now after your fear mongering this time last year?

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