By
Steve Muchoki
April 16th, 2024
Top investment analyst Jeff Saut believes that the U.S. stock market has some years on the upside left.
Top investment strategist Jeff Saut has a crystal ball to predict the future as regards where the U.S. markets are headed. Sources indicate that in spite of the new highs that stocks have been reached in the past few years, many investors are still overly cautious. They are afraid that the “ball will drop” and that markets will reverse course in a new global financial crisis reaching levels that occurred only just a decade ago when the United States Sub-Prime Mortgage markets went bust.
Jeff Saut who is the Chief Investment Strategist at Capital Wealth Planning has indicated that the markets still have much to offer in terms of returns in the next few years. The issue of fear and a cautious approach by investors might be a good thing for those who wish to dip their toes in the markets albeit it must be done in a manner that moves investments forward rather than backward. Jeff thinks that the bull market will run beyond 2020. He said:
“Central banks of the world are printing money, and that’s all you really need to know.”
“I think we’ve got years left on the upside”, added he.
This, of course, points to the fact that people will always be afraid regardless of whichever way the markets move. Jeff indicated that between 1949 and 1966, the bull market that produced spectacular gains for the period ended in a 30% drop. He also noted that the markets recovered to come into a bull run despite the 1987 crash and the overall 1982-2000 bull run. Jeff has predicted that come 2020 the S& P 500 will rise potentially by 13% to 3,600 points next year. This of course further proves his expertise in predicting how markets will turn out with a certainty that many yearn for but don’t get to experience.
On the technical side, Jeff hasn’t been slacking either. He noted:
“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 Russell 2000 Small-Cap index.”
From this point of view, a golden cross shows a bull run which will last for a certain period before reversal. The convergence of a golden cross and two moving averages (the 50-day and 200-day) on longer periods indicate the surety of this sort of bull run.
In essence, to anyone scared at how the markets will move, be sure of one thing: any dips in the markets will recover and a peak shall be reached priors to the bears taking over. At least we can all look to Jeff when the bears are coming (pun intended).