Tags: Acampora | stocks | bull | market

Acampora to Moneynews: Secular Bull Market Will Stampede On

Friday, 19 Jul 2013 07:05 PM

By David Nelson and Dan Weil

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Stocks have soared more than 2½ times their March 2009 lows, and the party has a long way to go, says Ralph Acampora, director of technical research at Altaira Wealth Management.

This bull market will last 10 to 20 years, Acampora told Newsmax TV in an exclusive interview.

"We have momentum going our way, we have leadership going our way, we have market breadth going our way, we have low inflation, low interest rates," Acampora said. "It doesn't get any better than that." 

Watch our exclusive video. Article continues below.



Both the Standard & Poor's 500 Index and Dow Jones Industrial Average hit record highs again Thursday – 1,693.12 for the S&P 500 and 15,589.40 for the Dow.

The market has strong "structural sentiment," Acampora said. "I'm talking about a secular bull market, which I firmly believe we're in. Secular means it's going to last a decade or two."

Editor’s Note: Put the World’s Top Financial Minds to Work for You

At the start of a bull market, there's plenty of doubt, and investors stick largely to blue-chip stocks, he says. "We've had that for the last 4 ½ years."

 In the second phase, "investors feel a little bit more comfortable, they become believers," Acampora said. Small- and mid-cap stocks lead the way in this period. "And about two weeks ago, that's why I got so excited," as small- and mid-cap stock indices hit record highs, he said.

 "So we're in part two, which could last quite a while. I'm talking years."

Then comes the third and final phase. "Sentiment gets very speculative, and people become very complacent. They get their market call on Saturday night, when you get the hot tip from a cocktail party," Acampora said.

"That's when the bubble comes. I don't see any of that, thank God."

A tapering of quantitative easing by the Federal Reserve won't stop the trend, Acampora says.

"[Ben] Bernanke started talking about taking his pedal off the gas, or whatever he's doing," Acampora said.

"It scared the heck out of global markets. We dropped 5.5 percent. Now, we're up at new all-time highs," Acampora said. "Forget about the tapering. It's already been discounted by the market. We're going up." 

The fate of the Dow Jones Industrial Average is closely tied to that of the Dow Jones Transportation Average, Acampora says. 

When both averages hit new closing highs, which they did Thursday, that confirms a "primary bull market," he said. The industrials finished at 15,548.54 and the transports at 6,579.05 Thursday.

 "When they don’t confirm, one makes a new high and the other one fails, then you're on guard that maybe there's a problem. For the last four years, it's up, up, and away. There's an old adage: don't fight the Fed."

Editor’s Note: Put the World’s Top Financial Minds to Work for You

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