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This Bull Market Will Linger

By Arne Alsin

About this article:
Expect to be surprised by both the strength and the duration of this bull market. Here are four reasons why this bull has years to run. First, many stocks are still crazy cheap. For example, I'll recommend a stock later in this column that's priced well below its net working capital. There are still plenty such bargains, a clear indication that this bull is young. Second, virtually no one believes this rally. Fund flow data show investors are forgoing stocks in favor of bonds. It's classic early-cycle stuff: Investors don't move from risk-free cash to stocks in the early days of a bull market. They gradually take on more risk, beginning with a transition from cash to bonds, with capital allocated to higher-risk investments, such as stocks, later in the cycle. The third reason: We're just now entering the sweet spot in the profit cycle, when...

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