Acceptance. 

That’s right, your acceptance. At least according to Josh Brown from Ritholtz Wealth Management. Just accept that this Bull Market is getting started, the CapEx cycle is about to kick in and we will surely see this market take off to the moon.  Screw China, credit bubble, the FED, speculation, overvaluation, unemployment, cycles, timing, technicals and everything else I talk about on this blog. Just accept and welcome this bull market into your soul. That’s all you need brother. Praise the Lord.  

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The Secret Ingredient Needed For This Bull Market To Continue Google

 

Bull market needs one thing to keep going: Josh Brown

After reaching a major milestone last week, stocks have been a mixed bag; U.S. markets have largely shrugged off escalating tensions between Western nations and Russia this week over a possible annexation of Ukraine’s Crimea region. Early Wednesday afternoon major indexes were flat as investors awaited comments from Fed Chair Janet Yellen.

Many investors are beginning to wonder if the five-year-old bull market has hit its peak.

Josh Brown, CEO of Ritholtz Wealth Management and author of “The Reformed Broker” blog, says we’re in the “acceptance phase” of this bull market — a stage nestled between enthusiasm and greed. If the good times are to continue for investors, then capital spending has to increase.

While the capEx cycle remains elusive — “there’s no evidence of it yet” Brown says — a new survey of CEOs by the Business Roundtable shows that almost 50% of the CEOs surveyed expect higher capital spending in the next six months, up from 39% three months ago.

“If you’re bullish now the bull case can’t be more multiple expansion as was the case last year,” Brown argues in the video above. “The cap ex cycle is long overdue…it’s been restrained for five years.”

If Brown is right, you may want to follow his investing lead: he’s overweight industrials, financials, tech and energy — all sectors that benefit from additional cap ex spending. Banks especially are ripe for a comeback.

“They’re the cheapest sector in the market…historically very low priced to earnings,” he notes. “If rates go higher then banks should do well. A lot of people still have distrust in the financial system which works in your favor if you’re a long-term investor.”