December 2, 2013

Are we at the top yet? Not neccesarily. Prepare for a longer than projected climb.

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By Peter Bower

Now that we are past the barriers of large round numbers, we expect a continuation of the rally we have been experiencing.

This is a low volatility rally (the best kind), that is capable of moving far higher than most investors expect.  This rally may last another 30 to 90 days before encountering any significant setback.

Recently financial stocks (banks and investment companies) broke out of a base pattern and good quality names are advancing once again.  Financials are a big sector and intuitively have to do well to support a growing economy. This market needs the financials to advance for the market to remain healthy.

A growing economy is at the core of why we expect higher stock prices.

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