March Lows a "Textbook Bottom," Buy the Dips, Says Schwab Funds CIO

The outperformance of riskier sectors - smaller-cap, growth and economically cyclical names - has all the hallmarks of prior major bottoms, including 1974 and 1982, Mortimer says in
the accompanying video, which was taped prior to Wednesday, the latest installment in the post-March rally.

Although valuations never got as low in the current cycle vs. 1974 or 1982, the low inflation environment makes every dollar of earnings worth more, supporting higher P/Es, he argues.

For investors who've been skeptical of the rally's staying power (like yours truly), Mortimer's advice is simple: dollar-cost average into stocks and use pullbacks to increase equity exposure to levels appropriate to your age and risk tolerance.