Bull market may end by middle of 2015: Schatz

Suzanne O'Halloran

With the bull market possibly back on track, after this week's big dip and turnaround, Paul Schatz of Heritage Capital is cautioning investors to tread carefully.  “If this is a football game I think we are in the fourth-quarter of the bull market, so rallies are getting more and more selective but by no means is the bull market over.”

Right now with thr market under pressure we probably bottom sometime this month between here and say 16,000 / 15,800, you should get a very strong rally in november december

If rallies are going to be selective that means investors need to be selective as well says Schatz “you can start to look into things that may not go up with the bull market but may protect you in a downside.” Treasuries (need treasury here) and a long-short exchange-traded fund (ETF) or mutual fund (can he give us a reccomendation?) are among his recommendations.

The Dow Jones Industrial Average (^DJI) is back in the black for the year following Wednesday’s rally of nearly 300 points after minutes from the FOMC’s last meeting showed policymakers share the same worries that have been plaging U.S. investors in recent days: a stronger dollar (UUP) and weaker global growth. This means a rate hike in 2015 is likely to happen in the latter half of the year.

If policymakers stay the course on this messaging U.S. stocks may continue to climb well into the first quarter of 2015. Corporate profits may also help, Alcoa (AA) posted stronger-than-expected sales and profits, kicking off what may be a record third  quarter for U.S. companies.