September 8, 2014
By Peter Bower
The U.S. economy has caught a higher gear and is revving up to a 3% plus growth rate. Most economic indicators now support this thesis. In fact, the second quarter this year grew at a 4.2% rate. Some of this was a rebound from the severe winter conditions in the first quarter and can’t be counted on to be the normal run rate. However, it is now clear the economy is not slipping back to the sub 2% growth level.
What does this mean for investors? It lends confidence that current record earnings can continue to grow. It gives underlying support for present levels and indicates higher averages are likely. Geopolitical events can and will from time to time derail this market, but with such strong fundamentals, the odds are for a higher market.
Enjoy and stay steady, my friends.
the Lonely Bull
