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The bulls have officially run wild. 

Aug. 22 marks the longest bull run in American history, according to most market observers. In March of 2009 -- when things seemed like the financial crisis would only get worse -- a bull run began. And it hasn't stopped. Last year, the U.S. stock market returned an astounding 21% plus. While this year has seen the market hit with a February market correction and trade war fears, the stocks are still up, but less so. 

The S&P 500 is up 6.71% this year, slightly lower than its historical average return. 

Some are predicting a downturn soon though, which many on Wall Street also predicted in January this year. But the bulls are out there. 

"If you believe we're in the middle of the cycle and that there is still more steam left in the market, then industrials and IT may be the sectors leading the charge," Mike Loewengart, VP of Investment Strategy at E*Trade told TheStreet. 

Blackstone vice chairman Byron Wien tells TheStreet's Executive Editor @BrianSozzi the bull market is only in the fifth inning.

More specifically, here are several more sectors TheStreet's sources said could be positioned particularly well for the next leg of the bull market.  

Raw Materials

Producers and consumers have been restrained to buying goods domestically, as President Trump has enacted tariffs and initiated what some fear could become a full-blown trade war with foreign trade partners. So pricing power may emerge as a tailwind for domestic raw material and industrial companies.

"Looking at the factors at play today, between ongoing tariff tensions and a greater "America-first" focus, producers and consumers are looking domestically for goods and services," Loewengart said. "So with U.S. raw materials, like lumber and tools, growing in demand, it will help drive this sector up."

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Consumer Discretionary 

Should wage growth and strong employment data be a part of stronger, and broader economic and market growth story ahead, consumer discretionary players could be set for gains. "Consumer discretionary should do well if we see wage growth and increased spending," Loewengart said. "Valuations for the sector are reasonable, but in line to above the market." 

Indeed, Starbucks (SBUX) - Get Starbucks Corporation Report only has a trailing-twelve month price-to-earnings ratio of 16.4 times. McDonalds (MCD) - Get McDonald's Corporation Report has a trailing PE ratio of 20.92 times. The S&P 500 undefined has a PE ratio of 24.75 times. 

Chris Wolfe, Chief Investment Officer of First Republic Wealth management told TheStreet recently "be in consumer discretionary" because "the wage story is pretty good." 


"Despite the issues [sharp selloffs] seen in the FAANGs earlier this month, they continue to show resilience and claw back from their recent tumble," Loewangart said. That group of stocks is perhaps one of the most interesting ones to consider longer term. All the companies in the group are large, profitable {although Netflix is free cash flow negative}, and doing things to reinvent how life is handled.

Morgan Stanley backed up Loewengart's bullish view. 

Average portfolio allocation to large-cap tech stocks amongst institutional investors rose 17 basis points quarter-over-quarter in the second-quarter this year, according to a note from Morgan Stanley analysts. Investors added heavily to Apple (AAPL) - Get Apple Inc. Report , Amazon (AMZN) - Get, Inc. Report  Facebook (FB) - Get Meta Platforms Inc. Class A Report , and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report

Investors see huge promise in Apple's services business, which is currently in its infancy and high growth mode, growing 31% year-over-year in the fiscal first-quarter. Meanwhile, iPhone X sales performed well, amidst doubt on demand. And still, "We continue to see the opportunity for a rotation in the institutional investor base as services becomes a more meaningful revenue and profit generator for the company," the Morgan Stanley note said.

It probably doesn't hurt that Berkshire Hathaway (BRK.A) - Get Berkshire Hathaway Inc. Class A Report (BRK.B) - Get Berkshire Hathaway Inc. Class B Report billionaire CEO Warren Buffett continues to buy more Apple stock. Buffett is the ultimate long term investor.  

Facebook is also still a definite buy, says Morgan Stanley, even though there is the "potential ad efficiency headwinds around data privacy." "We still believe Facebook has among the leading reach and ROIs of any advertising platform," the note said. Also, investors can look for "traction in Facebook's emerging formats/platforms such as Facebook Watch, Instagram TV, Messenger, and WhatsApp." 

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