February 11, 2021
By Scott Wohlers
No matter how many analysts wring their hands and cast knowing concerns about the price action in this stock market, it goes higher. An election, a new administration, impeachment (again), and a continuing pandemic, cannot stop the appreciation. So, it turns out, it is really not complicated; money and more money galore seeks a home with few alternatives. New homes, cars, boats, and other big-ticket items cannot absorb it all. Interest rates near zero offer no competition to stocks paying much better dividends along with appreciation potential. So, the money keeps rolling into stocks.
This trend is not going to end soon. Yes, there may be some choppiness from time to time, however, it does not last long before the rush of new money overwhelms pessimism and drives the averages higher yet. Get long, stay long is the appropriate strategy; simple and direct. This will be true until the money quits flowing or there is some type of unexpected event of surprising magnitude. Stay steady my friends.
The Lonely Bull
