Investors See Bull Run Fading Away by Year’s End

Stocks may be rallying right now but today's bull run will fizzle out before the end of the year, investors say.

Badly needed reforms in the United States and Europe won't come in time to make structural improvements to the global economy, which is what markets and pretty much everyone needs these days for the world to see lasting improvement.

"Some grand deal on entitlements in the U.S., moves to bring the 17 countries now part of the EU either fiscally closer together or monetarily further apart, or a more rapid acceleration in the value of China’s currency would all be long-term positives for equities now trading at low levels of valuation despite low levels of inflation and long-term interest rates,” says Jason Trennert, investment strategist and founder of Strategas, according to CNBC

NYSE floor traders (Getty Images photo)

"In the absence of such important secular reforms, investors can only hope for quick liquidity fixes that may mask the global economy’s underlying injuries."

Some want the government stay on the sidelines.

"I want the government to do nothing," says Peter Boockvar, equity strategist at Miller Tabak. "Let the market work. Let it wring out the excess."

While stocks have been volatile this year, gold has become a popular safe haven.

Expectations that the Fed may loosen already loose monetary policy in an effort to get the economy going again could weaken the dollar and fuel more demand for the precious metal.

"The Fed is telling us they are willing to provide more support for the economy," Frank Lesh, a trader at FuturePath Trading in Chicago, tells Bloomberg.

"More free money, the fear of a slowing economy, and a weaker dollar are driving more people into gold."