Bulls versus Bears

"Only own those rare stocks whose earnings yield over the next few years will be much higher than the bond yields against which stock valuations must compete." Kenneth Fisher, son of Philip Fisher.  Just like his father, the young Fisher is a conservative investor.

"When the earnings yield on stocks is very low relative to bond yields, stocks will fall. "

"No one can precisely 'time' the market.  As PEs moved up from levels that were historically cheap to a range somewhat above long-term norms, pocket some of your equity profits now and build up your cash reserves to the 10%, then 15% and then 20% level."

"As the dream merchants continue to drive prices higher rapidly, raise more cash." 

"The near term nod still goes to the bulls.  Firstly, both Newton and experience have shown that a body in motion continues in motion until stopped by something more formidable than anything one can see at present.  Second, there is simply too much liquidity in the world with no better place to flow."

"The market has only recently gotten carried away, and it can still correct these excesses in a mild, orderly fashion."