Just like a huge ship, the U.S. stock market churns forward and upward. Markets rarely ever move on one factor and this one is no different. Last week we cited world reflation as the most important factor in stock price increases since early last year. That is still true and you can add expectations on corporate tax reform, individual tax reform, regulatory changes, and corporate profits growth.
Euphoria is a warning sign for bull markets. It is not the only tell-tale, but it is an important one. What we can say is that there is no sign of it yet. In fact, caution rather than exuberance seems to be the prevailing sentiment. So on we go, steaming ahead.
Stay steady, my friends.
the Lonely Bull