The current investing environment seems terribly confusing to many.

There are so many cross currents. Some, like tax cuts, less regulation, and fairer trade agreements seem positive, while others that are more political in nature seem to introduce controversy and confusion. Yet, the stock market has been on a steady march toward higher values. First quarter earnings have been surprisingly positive and point to another year of good growth. Is this what is really important?

There is an underlying trend that has more importance than the politics and expectations of an improved business climate.

This trend started last spring after the bottom in commodity prices. It is simply that the world is reflating and prices and economic activity are responding. All major central banks, including our own, still have easy money policies. Governments everywhere are doing what they can to push growth. It is working. That is why markets all over the world are in sync and marching to new highs.

Stay steady, my friends.

the Lonely Bull