UPDATE: This is why the bull market can keep running for years even if investors dump stocks
By Tomi Kilgore, MarketWatch
Public pensions are flooding the credit market
If the market is never wrong, according to the old Wall Street maxim, then why does the stock market keep rallying despite worries about North Korea, U.S. policy uncertainty, Federal Reserve tightening and concerns over runaway valuations?
Simple. It is because public pension funds keep flooding the credit markets with cash at a record pace, and companies keep using that money to buy back their stock, says Brian Reynolds, asset class strategist at Canaccord Genuity.
Reynolds said he believes the credit boom could continue for at least three years, and maybe even five. That would make the current bull market the longest in history by a wide margin (http://www.marketwatch.com/story/welcome-to-the-second-strongest-bull-market-since-world-war-ii-2017-09-20). A bull market is defined by many as a rise of 20% or more off a bear-market low, without a 20% decline.
Don't miss: Key lessons from the second-longest bull market, in 11 charts (http://www.marketwatch.com/story/key-lessons-from-the-second-longest-bull-market-in-11-charts-2017-09-20).
See also: Here's the 'best reason to be bearish' in the final quarter of 2017 (http://www.marketwatch.com/story/heres-the-best-reason-to-be-bearish-in-the-final-quarter-of-2017-2017-09-29).
Unlike so-called smart investors, who worry about fundamental influences including the economy, politics and even natural disasters, the nation's public pensions trustees only care about one thing: