This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SALT 2013: Why We Remain in Bull Market Territory

Stocks in this article: MS

LAS VEGAS (TheStreet) -- The Skybridge Alternatives (SALT) Conference kicked off on an optimistic note on Wednesday, with a presentation by David Darst, managing director & chief investment strategist of Morgan Stanley (MS) Wealth Management, who delivered an impassioned speech on the markets and the global environment.

Citing the leading asset classes of the last ten years -- Latin American equities up 22.8%, gold up 17%, Master Limited Partnerships (MLPs) up 16.5%, emerging market equities up 16.4%, Australia Equities up 15.2%, Canadian equities up 13.7% and emerging market debt up 12.0% -- Darst then focused on why the market has surged of late....and, more importantly, why there is more room to go.

In particular, Darst noted five major events we have avoided, allowing the market to continue its upward slope: (1) We have had no armed conflict between Iran and Israel, (2) no messy Greek exit, (3) no Chinese hard landing, (4) no double-dip recession in the US, and (5) no fiscal cliff in Congress. Of course, this has been supplemented by helpful "yes" factors, including Mario Draghi asserting he would do whatever he can to save the Euro, QEIII (Sep 13) and QE IV just three months later.

And to the bears, he said: Is the fed tightening? No. Are valuations stretched? No. Is investor euphoria present? No. Are bond-yield spreads widening? No. Is there a recession looming? No. Are the transportation sectors, banks and small caps taking bullets? No.

These echo many of the reasons behind the optimism we have cited consistently on Mad Money.

Plus, when looking at the money flow over the last ten years, stocks are glaringly left out of the picture: As Darst outlined, we have had Central Banks buying government securities, banks buying liquidity, corporations buying cash, endowments and foundations buying alternative pensions, mainstream individual buying bonds and ultra-high net worth investors buying trophy assets (real estate).

Of course, flexibility -- the willingness to embrace ambiguity -- is a key component of benefitting from this rally. And as Darst eloquently put it: "Take cookies when cookies are passed. Grab a cookie. Realize that they may not come around again."

TheStreet will be live-blogging from the Salt Conference on Thursday 9 May, starting at 1.45 PM ET.

--Written by Nicole Urken in Las Vegas.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs