Richard Bernstein, Merrill Lynch’s former Chief Equity Strategist and founder of Richard Bernstein Advisors says the US equity markets remain in the early phases of a new bull market. According to Bernstein investors are still far too cautious and in denial over the sustainability of the market run. Bernstein says we are currently sitting somewhere between stages one and two of the bull market:
1. Denial—The bull market can’t happen. Shouldn’t be happening. Won’t continue.
2. Acceptance—Fear of missing out leads investors to increasingly participate.
3. Brainwashing—New investment world. The bull market is never going to end.
4. Bear market—The end of investing as we know it.
Source: Richard Bernstein