The Bullish Case for the Stock Market

It’s remarkably easy to find the case for selling stocks. It seems it’s always easy to make a bearish case, and perhaps that is why there are so many bearish newsletters. It’s easy to write that bearish marketing copy.

So, here’s a compilation of bullish arguments. It points out, for example, that a year of strong gains usually is followed by another positive year. And stock price-earnings ratios are below average if we use the average from the last couple of decades instead of reaching back to pre-World War II data. There are a few other arguments. Review them when you are presented with the bearish case.

Finally, hedge-fund manager David Tepper, founder of Appaloosa Management, said in a conversation with fellow anchor Stephanie Ruhle about two weeks ago:

“I would be worried if I were a long-short equity manager and not long enough — but I am long, so I’m not worried.”

Tepper is up nearly 50 percent so far this year, double the gains for the S&P 500.