Don Hays: Long Way From Stock Market Top

By on November 29, 2013

Don Hays - Hays Advisory GroupThe chairman of the Hays Advisory Group, Don Hays, provided his stock market outlook on Yahoo’s Breakout program.

Hays sees the Gallup satisfaction poll as an important indicator of stock market potential:

“The Gallup (U.S. Satisfaction) poll is really, strangely enough, one of the better market indicators of the secular and even the cyclical (long-term) bull market,” he says, before noting that the recent 20% reading, while up a slightly, ‘’remains one of the lowest readings in last two years.”

While being cautious on the near-term prospects for stock market gains, Hays is confident we’re witnessing a secular bull market that could continue for several more years.

“Today, some of the traders are getting a little bit too optimistic, so that’s why we’re saying the short-term is a little cloudy,” he says. “By the same token, the long-term trends, like this Gallup poll, show most people are very risk (averse) and they’re keeping their powder dry.”

“When (people) start to bring that powder to the stock market, that’s when you have to start worrying about a topping phase,” he says, soothingly adding “we’re a long way from being there.”

Back in December 2011, Hays mentioned that Treasuries were only yielding 2%, while stocks provided an 8% earnings yield. Hays said there was lots of cash sitting on the sidelines which would provide fuel for the next rally. He indicated psychological factors would also provide support along with cheap valuations. He added that monetary factors couldn’t be better with the Fed providing “tremendous liquidity.” [Link]

Source: Yahoo! Breakout

One Comment

  1. John Carnby

    December 2, 2013 at 2:14 pm

    Mr. Hays is on record for a bullish outlook right before the bear market unfolded in 2008.

    On 8/30/07 Hays proclaimed: “…this bull market is very healthy, and poised to present huge gains in the next 6-30 months.”

    On 9/20/07: “…the massive new bull market…is still ticking.”

    The market plunged over 50% after these bullish forecasts!

    Mr. Hays is yet another example of a man who sounds convincing, but is wearing no clothes. Please do not post his views here ever again.

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