Melting Up

The stock market has been hitting new highs. European and Asian markets are on fire. More stocks are participating in the rally, and interest rates are slated to begin falling soon. Indeed, in the treasury market, short-term interest rates have already been falling in anticipation of rate cuts by the Federal Reserve.

The most encouraging thing about this rally is that business fundamentals have been keeping up. This is not the case of investors hoping that company economics will get better, but that they are already doing so. In some ways, investors are simply being pulled along.

We are in what has been a seasonably weak part of the year for returns, but this year seems to be an exception. Certainly, volatility can come from anywhere, but the trend is for higher prices and greater returns. A lot of good factors have lined up! Enjoy the ride and stay steady my friends.

-The Lonely Bull