Records are made to be broken. We are on the verge of setting new record levels for the S&P 500 and Dow. However, to put this accomplishment in perspective, valuations are far from records. P/E ratios and many other measures are still within historically middling ranges; but it still feels good.
Fabulous performance and earnings growth by so many companies are behind this accomplishment. The outlook for earnings growth still looks to be excellent. Emerging markets are recovering; Europe is probably not far behind. These should help many of our multinational firms extend their record earnings growth run and this should lead to more records for the market averages. Stay steady, my friends.
the Lonely Bull