Get Used To Dow 10,000?

The more things change, the more they stay the same. The Dow Jones Industrial Average (DJI) is criss crossing 10,000 again this morning, a level it reached almost 11 years ago. One investment manager says Dow 10,000 is a theme we should get used to.

Vitaliy Katsenelson told Tech Ticker this morning that "historically, secular bull markets such as the 1982-2000 rally are followed by prolonged periods of sideways market action." This is because valuations exceed historical averages during bull markets and it takes them many years to revert back to the mean. Katsenelson said the current market will be range bound for quite some time because we are coming off the highest valuations we have ever had.

Looking ahead, he believes investors need to focus on stock picking to discover real value. His advice is to avoid index funds and says investors should pursue a "buy and sell" strategy rather than a "buy and hold" strategy.