That didn’t take long. The slump in the S&P 500 Index
and Nasdaq Composite Index
after their meteoric rise off mid-June lows has a lot of market commentators asking two key questions: Was that a head-fake bear market rally? Will the market retest the lows and and go lower? My answers: No and no.
I argue we are in the early stages of a new bull market, which means you should buy any significant weakness, like what we see now. I don’t mean to be dismissive of the skeptics. We need them. After all, a key component of any bull market is the “wall of worry.” You always need large groups of people worrying about this and that, and predicting market and economic demise, for a bull market to survive. Here’s why: Once everyone is bullish, there are no longer people out there to turn bullish and drive stocks up. Of course, I might be the one who turns out to be wrong. But here are my five reasons why we are in a new bull market phase, and five stocks that will likely outperform during that period.Reason #1: High inflation really is transitory Market bears tell us inflation will remain high, forcing the Fed to hike rates so much that it causes a sev …