The Bull Market That Just Keeps Going

It’s that part of the cycle again where markets keep climbing despite headlines that should have easily slowed them down. I open the Wall Street Journal and read about slowing job growth, sticky inflation, geopolitical uncertainty and yet the S&P 500 is still marching higher like it didn’t get the memo.

Even Nick Maggiulli, the guy who literally wrote Just Keep Buying, recently published a blog suggesting we might be at a market top. He even said he was moving 20% of his portfolio into bonds. That’s like seeing your most optimistic friend leave the party early, it makes you wonder if he knows something you don’t.

So, the question is: why does optimism persist?

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Reasons for Relentless Optimism

There are a handful of very real reasons investors keep pushing this bull market forward:

1. Corporate profits remain strong. Tech giants are still reporting earnings that are unprecedented in multi-trillion-dollar companies.

2. The U.S. has avoided recession. Despite two years of “any day now” recession predictions, the economy has been surprisingly resilient. Consumers are still spending, jobs are still being added, and growth is hanging in there.

3. Interest rate optimism. The market is pricing in multiple rate cuts starting in September. Even the hint of easier money gets investors excited, because lower rates make stocks more attractive relative to bonds.

4. Cash on the sidelines. Investors still have dry powder, and when you combine that with a crypto boom and a classic fear of missing out, it creates rocket fuel for prices.

I went golfing recently with a guy who told me he put his entire net worth into an ETF that triples the daily moves of the Nasdaq. He said he was determined to ride it through the ups and downs. I don’t recommend that strategy, but it’s a great example of what kind of mindset spreads in this environment. Enough people believe the ride will never end, and the market can float higher on that belief alone.

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The Risk Everyone Ignores

If I had to guess, I’d say we’re stretched. Valuations are high, price-to-sales ratios are at levels we don’t usually see outside of bubbles. Economic data is starting to weaken at the edges. Housing affordability is a mess. But here’s the truth: none of that matters in the short run.

Markets don’t move based on economic textbooks; they move on buyers and sellers. If buyers are still willing to pay more, stocks keep going up. That’s how you get companies with no profits trading at sky-high valuations. Investors aren’t buying cash flows; they’re buying a story about the future.

We’ve seen this movie before. In the 1990s, investors piled into dot-com companies with no earnings but endless potential. And the market kept going up and up… until it didn’t.

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The Lesson from the 1990s

Here’s the uncomfortable truth: this bull market could keep running longer than anyone expects. Or it could stumble tomorrow and turn into a multi-year bear market. Both outcomes are possible, and neither would surprise me.

That’s why trying to call the top is usually a waste of time. Nick Maggiulli might be right. He might be early. He might even move his money back into stocks next month. The point is, tops are only clear in hindsight.

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What You Should Do

My action item for you isn’t about predicting where the S&P will be next quarter. It’s about knowing yourself.

• Know your risk tolerance. If the market dropped 30% tomorrow, would you sell? If so, you probably have too much risk in your portfolio.

• Stay invested. The cost of missing the next 20% move higher is usually bigger than the benefit of dodging a downturn.

• Stay rational. Don’t chase an ETF that triples the daily moves of Nasdaq just because your golf buddy bragged about it. Don’t sell everything just because someone with a chart says a crash is imminent.

• Remember cycles. Bull markets feel like they’ll never end, and bear markets feel like they’ll never recover. Both are wrong.

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The bull market that just won’t stop may very well keep climbing. Or it may not. Either way, your job isn’t to predict the future—it’s to prepare for it. Build a portfolio that can weather both sunshine and storms. Enjoy the good times, protect yourself against the bad times, and remember that in investing, as in life, perspective is everything.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Stock investing includes risks, including fluctuating prices and loss of principal.​

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Why Chasing Passive Income is Keeping You Broke

Every once in a while, when I tell someone I host a podcast called Mind of a Millionaire, their first assumption is that it must be about cryptocurrency, drop shipping, or some other scheme that promises fast, easy riches. I get why. The people who actually build wealth quietly go about their business. They’re too busy running companies, serving clients, and solving problems to spend their afternoons making TikToks about how they bought a rental property with zero money down. That leaves the “wealth education” space to the loudest and flashiest folks, usually the ones selling dreams instead of substance.

After nearly two decades as a financial advisor, I can tell you that passive income is rarely passive. It almost always turns into another job. A rental property isn’t just rent checks; it’s leaky toilets, late-night phone calls, and tenants who vanish in the middle of the night. Running a website isn’t just affiliate checks rolling in; it’s constant updates, customer complaints, and Google changing its rules every six months. Even stock trading, which seems simple on paper, is an endless treadmill of research, risk, and gut-checking your emotions.

The hard truth is this: real wealth doesn’t come from hacking your way to easy income streams. Real wealth comes from providing tremendous value.

Warren Buffett said it best: “The best investment you can make is in yourself.” That doesn’t mean buying the latest self-help book or attending another weekend seminar. It means getting really, really good at something. It means developing a skill set so valuable that other people willingly trade their hard-earned money for your expertise. That’s where wealth begins.

Think about the wealthiest people you know personally. Odds are they didn’t stumble onto some magical stream of passive income. They became doctors, attorneys, business owners, advisors, contractors, or entrepreneurs. They took a skill set, refined it, and built their career around it. They didn’t get wealthy by chasing shortcuts. They got wealthy by becoming excellent at something that mattered to other people.

We live in an economy that massively rewards value creation. The more people you can help, the more wealth you can build. A plumber who unclogs drains makes good money. A plumber who builds a company that unclogs thousands of drains makes more. A plumber who designs a better tool for unclogging drains and sells it nationwide could become a millionaire. The same skill—applied at scale—creates exponentially more value, and therefore, more wealth.

Here’s the part people don’t like to hear: there is no reliable way to skip the “work extremely hard and provide a ton of value” phase. It’s tempting to believe you can buy a rental property or throw money into crypto and wake up rich. But that’s not how lasting wealth is created. The best way to become wealthy in America is to spend years developing your skills, grinding through challenges, and consistently finding ways to help others.

When you get this part right, the rest becomes easier. Once you have a large income from your expertise, then you can reinvest into assets that generate income—whether that’s stocks, real estate, or business ventures. At that point, passive income makes sense because it’s built on top of a solid foundation. But if you try to skip straight to passive income without first building active income, you’re stacking a house of cards.

Even the cleanest version of passive income, like dividends, still requires judgment. Companies go bankrupt. Industries collapse. Nothing in the financial world is truly set-it-and-forget-it. At some point, you’ll have to make decisions, and if you don’t understand the fundamentals, you’ll be lost.

So my conclusion is simple. If you’re chasing passive income because you think it’s a shortcut to wealth, you’re keeping yourself broke. Wealth doesn’t come from schemes. Wealth comes from working hard, becoming excellent at something, and creating tremendous value for others. Do that long enough, and income will come. Once it does, then you can put your dollars to work.

Stop looking for the shortcut. Start looking for ways to serve. That’s the real path to financial independence. 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Denver Wealth Management, Inc., a registered investment advisor. Denver Wealth Management, Inc. is a separate entity from LPL Financial.

The views expressed in this commentary are subject to change based on market and other conditions. The commentary may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. 

EP: 168 - August Investment Insights

Advisors and co-hosts Zachary Bouck, CIMA®, CFP®, and Austyn Garcia, recap our June 2025 portfolio meeting, discussing what happened in the markets over the last month, our approach to traditional asset allocation (cash, fixed-income, equities, and alternatives), and our general outlook for the next 6-12 months in the markets.

0:00 – Introduction to Investment Insights 1:58 – Understanding Risk Tolerance 2:55 – Embracing Artifical Intelligence in Business 4:01 – Market Overview & Recent Trends 7:02 – Analyzing Job Reports & Economic Indicators 10:08 – Investment Strategies Amid Market Fluctuations 13:13 – Expectations for Fed Rate Cuts 19:15 – Corporate Earnings & Market Strength 23:19 – Final Thoughts on Financial Planning

Visit www.denverwealthmanagement.com to schedule a free consultation.