If you’re sitting on big gains in stocks today, I have good news for you… There’s more to come.
The current bull market in stocks is now more than six years old… and stocks have already tripled in value. This has many experts and investors worried that we’re long overdue for a crash.
[ad#Google Adsense 336×280-IA]But there’s something unique about this bull market… and it’s indicating to us that stocks have plenty of upside left.
Let me explain…
Markets have been rising… but in an unusual way.
Remember what happens in a bubble… Greed takes control of investors.
They forget about safety and value.
They plow their money into the opportunities they think have the biggest payoffs. They can’t let a hot investment get past them.
That’s what happened with tech stocks in the dot-com boom. And with houses in the 2006 boom.
That’s not happening now in stocks…
Rather, the best-performing investments have been the safest ones. Blue-chip dividend-payers have outperformed the market drastically. The thing is, it’s strange to have the old, stodgy, and boring companies lead the way.
Of course, we love blue-chip dividend-payers. We love their safety and ability to compound wealth over time. We were among the first to talk about this coming trend years ago… and we built our Retirement Millionaire portfolio around them.
But it’s rare that they outperform the market over this long of a term. It’s a clear sign that investors aren’t taking risks. They are buying the safest stocks.
Some are even still buying U.S. Treasury securities at extraordinarily low yields. That’s a terrible decision. Even worse are the people buying German, Swiss, and Japanese bonds at negative yields. I don’t know about you… but I’m not investing in anything that’s guaranteed to lose me money.
The point is, investors are not going bubble-wild. They’re trying to go super-safe. And bull markets don’t end until investors bid up prices too far and speculate on a future unlikely to ever happen.
That’s not to say that we won’t see corrections in the coming months. We never try to predict such things. But we feel confident that a major bear market is still not a threat in the immediate future.
That makes us feel safe, but it doesn’t change our investing strategy all that much. In my Retirement Millionaire newsletter, I’m still recommending strong businesses that produce things that consumers want… or better yet… need. We also look out for assets that are available at cheap prices.
Higher valuations mean it’s a good idea to be a little more cautious than we were just a few years ago… but there’s no reason to fear a big crash in the near future. Folks still aren’t taking big risks. And that tells us this bull market still has plenty of room to run.
Here’s to our health, wealth, and a great retirement,
Dr. David Eifrig, Jr.
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Source: Daily Wealth