May 3, 2024
By Peter Bower
Some important stock market metrics are breaking out to the upside. Money flows, stocks above their 200-day moving average, and other measures of market breadth point to a significant rally coming. We’ve just had a correction, sort of. It certainly was not all that serious. Now the Bull and his partners expect recovery and potentially much higher prices.
Markets reflect fundamentals and they are good. Earnings now being reported point to an excellent business environment. Certainly, there are a few companies and sectors that have challenges, but the vast majority are doing very well. We see little reason that cannot continue.
The Federal Reserve and interest rates have been overhanging the stock market. Despite this, the market has produced some excellent returns. It just goes to show that earnings really are what is most important. So far, they are terrific. And remember, we have had good stock markets with higher interest rates in the past. Stay steady my friends.
The Lonely Bull
