A Longtime Bear Is Bullish, And He Can't Remember The Last Time That Happened
The S&P 500 is soaring to new heights. The index hit all-time highs in Monday's trading session, and one longtime bear is finding the breakthrough undeniable.
Investment advisor and author Gary Kaltbaum joined Tuesday's PreMarket Prep to give an unusually bullish case for the index. "I can't remember the last time I was bullish on the market. I have been anywhere from bearish to neutral I think for about 18 months, and there really hasn't been a reason to (be bullish) except now," he said. "A technician has to be on the bull case until [lines of support] are breached. It's as simple as that."
Kaltbaum added that a large number of cash in mutual and pension funds will force money managers to keep pumping money into the rising market. "Mutual funds and pension funds have 11 percent cash. That's a gargantuan number," he said. "I can promise you that these managers that have that 11 percent cash have no choice but to put it to use if markets go higher, which basically can fuel markets going higher."
Kaltbaum also noted that the numbers simply speak for themselves as far as where the S&P is headed in the future. "It's speaking loudly and clearly. It's very hard to fight when big base breakouts on major indices occur. And that doesn't mean they don't fail, but often enough they work for a while."
Even separate United States issues--such as the presidential election and social turbulence--have not dampened Kaltbaum's bullish thesis.
"I'm saying this knowing that earnings stink, we have social unrest, we've got a maniacal election, a dysfunctional government, sales heading south, and a lot of maniacs running the show right now."
Listen to Gary Kaltbaum's interview at the 58:46 mark in the clip below. For more trading ideas and insight on the markets check out PreMarket Prep LIVE every morning from 8-9:30 a.m. ET here. You can also listen to complete episodes on Soundcloud, iTunes and Stitcher.
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