Stock market's March bottom hit reset button for the next 10-year bull run — but investors should play it differently than in 2008, BMO strategy chief says

Summary List Placement

  • Brian Belski of BMO Capital Markets told Bloomberg that the stock market’s low on March 23 was the “control alt delete” reset button for the next 10-year bull run, the second half of a 20-year secular bull market.
  • But the strategist cautioned investors to not play the same strategy that they did following the 2008 financial crisis. Cyclicals, emerging markets, and oil may not be the move this time around.
  • “Bottoms-up stock picking” and “good old-fashioned” fundamentals will dominate this next bull market, Belski said.

Brain Belski, BMO Capital Markets chief investment strategist, told Bloomberg on Thursday that March 23, the S&P 500 index’s low, was the “control alt delete” reset button for the next 10-year bull market. This next decade will be a continuation of what he sees as a 20-year secular bull run.

However, Belski told investors to not use the same “academic” strategy as they did following the 2008 financial crisis. After that crisis, financial stocks led for six months, and then cyclical stocks, emerging markets, and commodities like oil took over again, said Belksi.

“Quite frankly, it’s not the same type of fundamental environment. We would caution investors by being that academic and playing that playbook again,” the strategist said.

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The key to this bull market will be “bottoms-up stock picking” and “good old-fashioned fundamentals,” he said. And, a focus on company management and products and services will dominate.

“Those that can’t embrace that and continue to go back and focus more on macro academics and quant will continue to hate the stock market and continue to underperform,” Belski said. The strategist added: “From every great recession and every great bear market, we’ve gone from despair to hope. The hope is new technologies, whether it’s Zoom Technologies, or new restaurants or new consumer discretionary, retail concepts, to new technology concepts to new vaccines, new healthcare. America is an economy and stock market of growth and innovation and we think that’s going to drive things.”

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