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Children of the baby-boomers are entering the time in life where investing is a serious thought. A growing independence from foreign energy sources. Housing prices are expected to finally bottom out. Add to that the technological advances continuing with innovation and a raging bull market is quite possibly around the corner. These are only four of the six trends introduced in The Raging Bull Thesis by Tobias Levkovich. Currently the chief U.S. stock strategist at Citi Investment Research & Analysis, he predicts “a major bull market will begin within the next year or so.

While many are hesitating to predict a bull market, Levkovich suggests it is more predictable. The parallel to the 1990s continues to grow as several economic comparisons can be made. The stock market fell in 1990 and housing prices nose-dived. The debt crisis was all too familiar to what we are seeing today.

“The sheer magnitude of mobility growth brings computing, the Internet, purchasing and entertainment in one’s palm and argues for significant investment in software, infrastructure, bandwidth and more efficient chips, batteries and production techniques. Fortunately, the U.S. remains the global IT leader,” says Levkovich.

American companies, including tech based busiensses, have long used the lower wages in Asian countries for manufacturing plants. However, with the 22% inflation in China’s wages last year U.S. businesses are moving manufacturing back to the United States. With relocation and the continuing rise of American oil and gas production, companies will be boosting the economy as products are once again produced locally.

In an upcoming article for Forbes Ken Fisher suggests “it’s a good time to buy, selectively.” He later recommends three tech stocks to invest in. This includes Garmin (GRMN) at 33, Symantec (SYMC), and Microchip Technology (MCHP).

Garmin (GRMN) has introduced more sophisticated outdoor recreational uses and shows promise. Symantec (SYMC) leads the world in computer software security systems. And Microchip Technology (MCHP) is a global leader in microcontrollers.

While the comparison to the 1990s isn’t perfect, the similarities are hard to ignore. The U.S. economy could experience a raging bull market in less than two years if Levkovich’s predictions come to fruition. He believes that it will only occur once “the major stock indexes reach new price highs.” This has not happened yet, but he continues to be optimistic.


 


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